Will Tencent Dance with Ctrip?

 | Jul 10, 2013 | 8:55 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:








There's an Internet rumor this morning that Chinese messaging and e-commerce giant Tencent will make a major investment in or buy travel operator Ctrip.com (CTRP). The rumor has the shares of Ctrip up sharply in premarket trading and close to 52-week highs.

The rumor comes a day after new Alibaba Group CEO Jonathan Lu gave an interview in the Wall Street Journal in which he said that the Group could go public at any time, and also that the Group would look to make acquisitions in the Chinese Internet space with its newly public stock currency.

If Alibaba is going to be a buyer of Internet assets, that is going to have a knock-on effect on Alibaba's direct competitors, like Tencent and Baidu (BIDU). Tencent and Baidu will feel increased pressure to buy assets that Alibaba might buy in the future. The advantage that Tencent and Baidu have over Alibaba, though, is they're already public.

Alibaba is not waiting for its initial public offering to make moves. It invested in Sina (SINA) and AutoNavi (AMAP) earlier this year. But being public will make it easier for Alibaba to move faster.

Travel is a key Internet vertical that you would expect big Internet players to look at. Baidu already owns Chinese travel site Qunar. Ctrip is the next biggest public travel company. Another possible travel acquisition candidate is eLong. Other key Internet verticals to watch in the future for possible acquisitions are online video, search, instant messaging, gaming, local, and social networking.

It should be a busy end of the year for Chinese Internet merger & acquisitions bankers.

Columnist Conversations

The integrity of the channel parameters on the General Electric GE chart could be a tell as to the short-to-in...
In mid August we added some Dec QCOM calls on a rollup, we take these off now. SOLD QCOM DEC 62.5 CALL AT 6...
Seeing a similar early start to trading as of yesterday.  Open pretty flat follow by reversal, especially...
Not pretty, but former net/net (and current double-net) up 15% yesterday on 2 1/2 times normal average volume ...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.