Expedia announced that it sold its 62.4% majority stake in eLong for a total of $671 million to several purchasers based in China.
Ctrip.com (CTRP) purchased a 37.6% stake in eLong for $400 million in the sale. Other purchases include Keystone Lodging Holdings, Plateno Group, and Luxriant Holdings.
The company also announced that it agreed to cooperate with Ctrip "to allow their respective customers to benefit from certain travel product offerings for specified geographic markets."
About 2.8 million shares of Expedia were traded by 11:54 a.m. Friday, above the company's average trading volume of about 1.5 million shares a day.
TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPEDIA INC (EXPE) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."