Tencent Holdings (0700.HK) has acquired an approximate 16% stake in eLong, a Chinese online travel service provider, for US$84.4 million, Dow Jones reported. It is Tencent’s first significant investment in the travel market, and highlights the company’s desire to fuel growth outside its core businesses of online games and messaging. Upon completion of the deal, Tencent – an online game and messaging company in China – will become the second-largest shareholder of eLong. Expedia (EXPE.NASDAQ), eLong’s controlling shareholder, has acquired approximately 8% of the outstanding shares for US$41.2 million and now holds 56% of the outstanding shares.
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