Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 11 pages
Data source: Published sources
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Abstract
Ctrip.com International Ltd (Ctrip) announced buying UK based air-ticketing specialist Skyscanner Ltd for USD1.7 billion, during November 2016. Ctrip being one of the biggest online travel operators in China, the strategic acquisition of Skyscanner was thought to pave a secure way towards their international expansion. The deal was significant since it marked a 'best buy' of an UK based technology firm by a foreign operator. Industry analysts were of the opinion that the acquisition would help Ctrip gain major market share in the European market. A major takeaway for Skyscanner, one of the largest flight ticketing services in UK, was 'business autonomy', besides zero risk of restructuring, after the acquisition was put into place. The acquisition enriched the services of Ctrip, who were to provide a wide array of services to the global customers. Bulk of the deal closed out on 'cash transactions' also revealed that, one of the largest UK based investor Scottish Equity Partners had a significant role to play in the process. The deal, however, created controversies, being announced exactly a day after the UK Chancellor of the Exchequer Philip Hammond announced pouring in investments in local digital start-ups. The deal was also significant in the light of 'Brexit', especially when most of the European firms were ready to relocate from UK's market. Forward-looking statements from Ctrip enumerated several market risks and uncertainties under which both the stalwart brands would work together to create 'one-stop solutions' for the global customers. Depending exclusively on service innovation, competitive offerings and entrepreneurial abilities, whether Ctrip could create geographical leadership in different markets, in future, remained to be a major issue for discussion.
Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 5 pages
Data source: Published sources
About
Abstract
Ctrip.com International Ltd (Ctrip) announced buying UK based air-ticketing specialist Skyscanner Ltd for USD1.7 billion, during November 2016. Ctrip being one of the biggest online travel operators in China, the strategic acquisition of Skyscanner was thought to pave a secure way towards their international expansion. The deal was significant since it marked a 'best buy' of an UK based technology firm by a foreign operator. Industry analysts were of the opinion that the acquisition would help Ctrip gain major market share in the European market. A major takeaway for Skyscanner, one of the largest flight ticketing services in UK, was 'business autonomy', besides zero risk of restructuring, after the acquisition was put into place. The acquisition enriched the services of Ctrip, who were to provide a wide array of services to the global customers. Bulk of the deal closed out on 'cash transactions' also revealed that, one of the largest UK based investor Scottish Equity Partners had a significant role to play in the process. The deal, however, created controversies, being announced exactly a day after the UK Chancellor of the Exchequer Philip Hammond announced pouring in investments in local digital start-ups. The deal was also significant in the light of 'Brexit', especially when most of the European firms were ready to relocate from UK's market. Forward-looking statements from Ctrip enumerated several market risks and uncertainties under which both the stalwart brands would work together to create 'one-stop solutions' for the global customers. Depending exclusively on service innovation, competitive offerings and entrepreneurial abilities, whether Ctrip could create geographical leadership in different markets, in future, remained to be a major issue for discussion.
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Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 5 pages
Data source: Published sources