IAC/InterActiveCorp Enters China Through An Investment in eLong.com
eLong Joins Expedia, Hotels.com, Hotwire and WWTE as Part of IAC Travel
07/30/2004
IAC/InterActiveCorp (NASDAQ: IACI) announced its entry into the travel market in China through its agreement to invest $60 million for a 30% interest in eLong, Inc., a privately held online travel provider based in Beijing that operates the websites eLong.com and eLong.net. As part of the transaction, IAC also acquired warrants, which if exercised will increase IAC's ownership of eLong to 51%. IAC's investment in eLong will be managed by IAC Travel, which operates the other travel assets of IAC, including Expedia, Hotels.com, Hotwire and Expedia's private-label business WWTE.
The company also announced the creation of IAC Travel-Asia Pacific, and the promotion of Barney Harford to the role of president, IAC Travel-Asia Pacific. Previously Mr. Harford was senior vice president of air, car and private label for Expedia, Inc. and prior to that was responsible for strategic planning for the company.
Said Erik Blachford, president and CEO of IAC Travel, "The Asia-Pacific region is an area of enormous growth potential- China alone is a $33 billion travel market. We think that the combination of eLong's extensive knowledge of the travel market in China; our own travel industry expertise and Barney Harford's proven success with building valuable businesses within IAC Travel will result in robust growth for IAC Travel in China."
eLong offers its customers the ability to make reservations at discounted rates at more than 2,600 hotels across China, both online and through its telephone call center. eLong also offers airline ticketing and other travel-related services. Since its inception in 1999, the Company has built one of the largest travel service distribution networks in China, playing a valuable role as an aggregator of hotel booking options for Chinese consumers and as an efficient marketing channel for hotels. eLong currently has relationships with more than 2,600 hotel suppliers in 220 cities across China.
"eLong is delighted to welcome IAC Travel-Asia Pacific as its strategic partner," said Justin Tang, CEO, Chairman and Founder of eLong. "We have built one of the largest travel service distribution networks in China, and we look forward to accelerating our growth through our relationship with IAC Travel-Asia Pacific."
"China is the most exciting and dynamic travel market in the world," said Barney Harford, President, IAC Travel-Asia Pacific. " We know that success in entering the China market is heavily dependent on having the right local partner. Given the early success of eLong and its extraordinary management team led by Justin Tang, we're confident that together, eLong and IAC Travel-Asia Pacific have the opportunity to play a pivotal role in the transformation of the China travel industry."
eLong will continue to operate independently and will retain its current management structure and employee base. IAC Travel will work closely with eLong to help increase the company's position in the market, expand its customer and supplier relationships and build a strong business for domestic travel and eventually for outbound travel from the region.
About eLong.com
Founded in 1999 by Justin Tang, eLong.com is one of China's leading independent, Web-enhanced travel service companies. Headquartered in Beijing, the company has a national presence across China. The company provides consumers with access to hotel reservations at discounted rates at more than 2,600 hotels in major cities across China. The company also provides airline ticketing services. eLong operates the websites http://www.eLong.com and http://www.eLong.net
About IAC/InterActiveCorp
IAC/InterActiveCorp (Nasdaq: IACI) is the world's leading multi-brand interactive commerce company. IAC consists of IAC Travel, which includes Expedia, Inc., Hotels.com, Hotwire, Interval International, and TV Travel Shop; HSN; Ticketmaster, which oversees ReserveAmerica; Match.com; LendingTree; Precision Response Corporation; IAC Local and Media Services, which includes Citysearch, Evite, Entertainment Publications, Inc. and TripAdvisor, Inc.; and IAC Interactive Development which includes ZeroDegrees.http://www.iac.com
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