NEW YORK (TheStreet) -- eLong (LONG) shares are up 9.4% to $22.59 in trading on Friday after Expedia (EXPE) sold its entire 62.4% stake in the Chinese hotel reservation company to several different companies for $671 million.
Expedia first purchased a stake in the company in 2004 and boosted that stake to majority ownership in January 2005.
Shanghai-based Ctrip (CTRP) announced that it had purchased the largest portion of the stake, 37.6%, for $400 million.
An analyst at Stifel Nicolaus estimated that eLong took about $33 million out of the company's first quarter earnings and that for the year the sale of the company's stake should add about $85 million to its earnings.
Expedia shares are down 0.95% in trading today while Ctrip shares are up 17.68% to $84.71.
TheDeal has further coverage of the transaction here.
TheStreet Ratings team rates ELONG INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELONG INC (LONG) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."