Tuniu $500 million she the three major factors lack of money, find a backer and make up the short bo

recently, the domestic online travel industry has been in tension, anxiety, and regulatory authorities to rectify the industry order, against "unreasonable low price" and "inhibition", there are a variety of "ban", off for disputes, so many people began to worry about the future of the industry.

 

the afternoon of May 8th, tuniu by Jingdong and other institutions a total of $500 million investment news is undoubtedly a long time online travel industry came only a good news, the parties immediately reaped countless blessings from the circle of friends.

recently, the domestic online travel industry has been in tension, anxiety, and regulatory authorities to rectify the industry order, against "unreasonable low price" and "inhibition", there are a variety of "ban", off for disputes, so many people began to worry about the future of the industry. However, the way cattle successfully obtained $500 million investment news is undoubtedly a bright ray of sunshine shed in the haze of online travel again to get recognized by the capital market.

according to the way cattle and Jingdong jointly released the news, the Jingdong will invest a total of $350 million to subscribe for shares tuniu, including $250 million in cash and $100 million to provide resources and operational support to the way cattle. After the completion of the transaction, will become the largest shareholder of Jingdong tuniu, tuniu accounted for 27.5% of the equity ratio and get a seat on the way cattle board seats. In addition, Hony capital, DCM, Ctrip, Temasek and Sequoia Capital will invest $80 million, $20 million, $20 million, $20 million and $10 million for the corresponding shares tuniu.

why would choose to sell a controlling stake in the way cattle at this time? This should be all the more concerned about the topic, the author tries to do a simple analysis of the reality of the situation from the industry structure and the way cattle.

Tuniu

needs more money

no matter when, sell their primary purpose is to sell a controlling stake in the way cattle money is no exception. The fundamental reason lies in the way cattle money continued to rise in the low level of profitability and cost. Tuniu reported total revenue for the year 2014 to 3 billion 547 million yuan, an increase of 81.3%, but the amount of the loss has reached 447 million 900 thousand yuan, is 5.6 times that of 2013. The primary reason is the rapid growth of the way cattle losses should be marketing expenses, the 2014 annual sales and marketing expenses increased by 294.5% year on year, far more than the revenue growth rate.

that’s not the worst. In 2015, the rapid deterioration of tuniu external competitive environment, the first is the beginning of the year and in the same way exit business in fierce competition, and is in contradiction with the open UTS and other core suppliers, in order to settle these problems, the way cattle have to put more capital in marketing and purchasing resources.

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