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eLong Announces Acquisition, Ad Deal
June 2, 2005 |
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eLong.com (LONG) has entered into agreements to acquire Shanghai Xinwang Computer Technology Company and its affiliate Bravado Investments Limited which together are engaged in the business of providing online and offline hotel booking services in China under the Fortune Trip brand.
eLong expects the deal to close during its second quarter ending June 30, 2005.
Fortune Trip is one of the largest hotel consolidators in China and has its head office in Shanghai, China. During the year ended December 31, 2004, Fortune Trip's customers booked approximately 250,000 hotel rooms through its call center and online via Sina.com's hotel channel. Fortune Trip has a national hotel network of 1,600 hotels.
eLong and Sina separately announced they have entered into a three year strategic advertising cooperation agreement whereby eLong will become Sina's exclusive hotel bookings partner in China upon the closing of the Fortune Trip transaction. During this period, Sina and eLong will operate a co-branded online hotel booking channel, and eLong will receive advertising placements on Sina's website.
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