Executives at Ctrip and Tencent Deny Acquisition Rumors
By ALEX HSU
A Ctrip executive close to Ctrip Chairman James Liang denied the rumor that Tencent was in talks to acquire a 51% stake in Ctrip for USD 6 billion. A high-level executive at Tencent also denied the rumor.
An investment banker close to Tencent said that it was unlikely that Tencent would purchase a stake in Ctrip at such a high price: “Tencent purchased a 16% stake in e-Long in May 2011 and also purchased a 30% stake in Tongcheng.com, another Chinese travel site, in January 2011. Acquiring Ctrip not only doesn’t make sense financially, but it would also have trouble standing up to the Chinese Commercial Ministry’s anti-trust scrutiny.”