A 5 webmaster network (www.admin5.com) October 29th news, this month, the evening of 26 Ctrip announced a deal with the Baidu Inc to achieve equity swap. After the completion of the transaction, the total voting rights to Baidu as Ctrip where the network "golden master" with Ctrip common stock represents approximately 25%, and became the largest shareholder of Ctrip, Ctrip will have about 45% of the total voting rights where the network.
is reported that Baidu and Ctrip will cooperate in the field of products and services. At the same time, Baidu will continue to go and where existing business cooperation. Including four Ctrip Ctrip executive chairman and CEO Liang Jianzhang and co president and COO Sun Jie, will be appointed to where the board of directors, Robin Li and vice president of Baidu mergers and acquisitions and investment director Ye Zhuodong will be appointed to the board of directors of ctrip.
"around April this year also announced at that time we didn’t talk, but we always go where and have good communication, do have conditions for a period of time could not agree, but recently talk faster, Chinese Internet a month there will be a lot of changes in the last one or two months is faster than you have a very satisfactory result." Liang Jianzhang said.
after the deal was announced, Ctrip chairman Liang Jianzhang with a brief message, fully affirmed the where in the OTA market value, and said, "where the future will continue as an independent listed company, and with Ctrip in the online travel market research, product creation and value differentiation for travelers".
"in the long term, is good, because relying on subsidies, zero gross profit or negative margin to marketing, for the entire industry are not healthy in the future with the development of the industry, this kind of money will be reduced, so the damage to shareholders very vicious competition will be reduced, we can put more resources into the to improve the quality of products and more abundant. Burn subsidies is not a permanent solution, malignant burn could reduce the positive profit." Liang Jianzhang admits.
the OTA to compete for customers, a lot of money to make price war, Ctrip every year to pay huge amounts of money into the price war, other OTA such as the way cattle, donkey mother, where are the tens of million or ten million yuan level to subsidize the price war, which makes Ctrip once the decline in profits, while other operators continued losses. Therefore, the industry believes that the two sides after the completion of the transaction, it will reduce the vicious price war is conducive to enhance the profits of enterprises, but the super low price of the product may be reduced.
to form a monopoly, the enterprise is certainly no harm, no need to burn a huge amount of money in order to seize the market, at the same time to develop business better, gain. But for consumers, with competitors, this is not a good news, this will mean that consumers have lost more than a cheap ticket booking channels, the future price of air tickets and hotel booking is likely to increase.