announced today that it has
entered into a definitive agreement to acquire Fortune Trip, an online
hotel booking company based in Shanghai. After the acquisition, SINA
expects Fortune Trip to become a cornerstone of its expanded effort into
In the past five years, China has seen a rapid growth in its economy.
Along with this growth, its travel industry has expanded dramatically
experiencing a 12.9% compounded annual growth from 1998 through 2002.
According to data from the China National Tourism Administration, the
total tourism expenditure in China was roughly RMB388 billion (USD47
billion) in 2002. Simultaneously, with a rapidly expanding Internet
population in China reaching 68 million users as of June 2003, according
to CNNIC, an ever increasing amount of hotel information and booking are
being researched and conducted over the Internet.
Fortune Trip is an online hotel booking company established in November
2001. It currently has over 130 employees with main operation based in
Shanghai along with in-field sales and marketing personnel operating in
several major metropolitan areas including Beijing, Shanghai and cities in
Zhejiang and Guangdong provinces. Fortune Trip has a national coverage
with over 1,000 hotels in its hotel network.
“With the rapid advancement of Internet and Mobile industry in China, we
believe that the growth of E-commerce will soon follow,” said Wang Yan,
CEO of SINA. “Leading the way of E-commerce growth in China will be
virtual products such as hotel and airline booking, digital entertainment
such as game and music downloads that bypass the issue of logistics. Our
acquisition of Fortune Trip represents a significant step in the direction
of E-commerce for SINA.”
The transaction is subject to customary closing conditions including
regulatory approvals and is expected to be completed in the first quarter