eLong (LONG) and Expedia (EXPE) announced a new agreement that expands global hotel booking options for consumers. The agreement outlines terms for enhanced collaboration between eLong and Expedia, more extensive best practice and knowledge sharing as well as strategic cooperation on potential merger and acquisition activity. The agreement also allows Expedia to increase its presence in the Chinese market by amending certain non-competition provisions previously entered into in connection with Expedia's investment in eLong. Under the agreement, Expedia will make an initial payment of $7M and a subsequent payment to eLong in November 2015 based on a revenue-sharing arrangement between the parties.
- Mergers, Acquisitions & Takeovers
- Travel & Tourism