The company changed its name or "Cheng Yi network"

Reporter yesterday learned from informed sources close to both sides, the long-rumored merger with Cheng Yi Long basic dust settles, the two sides have completed the initial integration contract work last month.

Under the agreement, eLong will merge with the way of achieving online business network with the same process, the same way the travel agency group will remain independent operators. Art Long and with the way the network or will be 1: 1 ratio related to equity swap.

It is said that the two sides after the merger, or the opening of a new name, "Yi Cheng net." With staff from Beijing headquarters, will all move to eLong office area.

In the leadership of the new company, "Yi Cheng net" terms, with the way Tourism CEO Wu Zhixiang likely to lead the new company in charge of the overall situation and conduct business.

An informed source revealed to crack monarch, originally announced last month, the two sides will the merger, but was delayed for a number of considerations. According to the current situation, the earliest end of this month, the news will be officially disclosed.

Both sides achieve large-scale profit

Reporters learned that one of the catalysts of this merger is that, with the way networks and eLong have achieved this year, large-scale profit.

With the way network, this year August 1, Wu Zhixiang to disclose inside the letter, has experienced 43 consecutive months of losses, in July 2017, the overall Group finally achieved over 30 million more than the size of the profit. Jun crack learned that the positive figures are the result of the stage with the way several million yuan net profit network with the way travel agents and several hundred million dollars negative balance of profits.

ELong aspect, since the first half of 2016 to complete the privatization of delisting, the absence of relevant information to expose profit. Public information display, eLong still at a loss in 2015, the annual net loss of 330.4 million yuan, up 2014 net loss of 206.7 million yuan has been expanded.

But since last year, eLong as business restructuring and focus on the hospitality sector, a substantial improvement in profitability began to appear. According to informed sources, eLong in 2017 is expected to achieve overall profitability billion.

Jun crack learned, eLong since privatization, has been seeking to re-visit the domestic capital market, had eLong existing "old" prefer a separate listing, while Ctrip management background tend enterprise integration with other online trip after listing, the final results, it is clear that his arm twisted, but the thigh.

With regard Cheng, Wu Zhixiang has already listed more than once talked about the topic the same way, but with the way the business is split online and offline preparation for the listing, after all, a profitable business with the way into the network, listed as soon as possible in order to get rid of the negative situation, waiting to fight another day.

Therefore, when both sides realize the scale of profit this year, the combined sprint to become a major catalyst A shares.

Tencent and urged Ctrip default

A source revealed to reporters, the same process can be successfully achieved eLong finishing this year, also benefited from Tencent, Ctrip and attitude.

Tencent, as the second largest shareholder of eLong's third-largest shareholder, and the same process, Tencent has continued to support the two companies over five years.

In the capital level, Tencent hope that through the integration of the two sides on the market, a greater return on investment, for now, only the merging parties on the market, in order to generate higher market capitalization, Tencent also more conducive to the return on investment.

At the operational level, Tencent micro-channel already has the wallet, QQ wallet hotel reservations, air ticket booking train tickets and other traffic its own entrance and eLong have been handed over to the same process control, if the two companies can integrate the follow-up, it means Tencent to further consolidate the two companies and Tencent's business collaboration, and produce more chemical reactions.

Ctrip as the second largest shareholder and the largest shareholder of eLong same way, Ctrip has basically realized the control and influence of the two companies. Some analysts said the king to crack, for eLong and with the way the merger, Ctrip's attitude is more "normal", so now the two sides have the will, and urged Tencent, it would help things along. Ctrip look forward to the future of the new company after the merger be able to Ctrip in the business and more collaborative.

Therefore, after the support of the two major shareholders, the merger parties to accelerate, and the pattern of the online travel market has also changed dramatically again. 2018, but also between Ctrip, after the merger, "Cheng Yi", passers-by cattle, donkeys mother and Flying Pig, the US group travel, ant cellular how these players are vertical and horizontal and fight, worth the wait.