American travel portal Expedia has sold its majority stake of 62.4% in loss making Chinese partner eLong for a sum of $671 million.
Expedia didn’t specify its reasons for the exit from China, but eLongs inability to make profits could be a major reason. eLong recorded a $33 million loss in its recent Q1 2015 and the prospects of a turnaround any time soon seem remote, according to techcrunch.
The stake sold by Expedia was bought by chinese companies including eLong’s fierce rival and travel heavyweight Ctrip, hospitality firms Keystone Lodging and Platen Group, and investment company Luxuriant Holdings. Ctrip separately clarified that it paid around $400 million for a 37.6 % share.Category Business