January 2016

[admin]

There are several ways to look at that further Ctrip-Qunar deal:

• Qunar isn't profitable, so the investment isn't adding to EPS
• However, Qunar isn't profitable because they were aggressively pursuing expansion, mostly at the expense of the market leader, which happens to be.. Ctrip
• The cross stakeholding will attenuate the competition, and Qunar is likely to experience a financial improvement as a result (which is why their shares are up pretty strongly today).