ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » Companies News

MakeMyTrip expands in fast-growing market with ibibo buy

India`s oldest travel website operator MakeMyTrip Ltd said it would buy rival ibibo Group to create the biggest player in the fast-growing flight, hotel and bus bookings market in the country.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
MakeMyTrip expands in fast-growing market with ibibo buy
The all-stock deal values the combined company at $1.5 billion, according to a source familiar with the deal. Photo: Youtube

India`s oldest travel website operator MakeMyTrip Ltd said it would buy rival ibibo Group to create the biggest player in the fast-growing flight, hotel and bus bookings market in the country.

The all-stock deal values the combined company at $1.5 billion, according to a source familiar with the deal.

The deal will add popular online ticketing websites such as, goibibo.com and redbus.com, to MakeMyTrip`s portfolio, which owns the flagship brand and the alternate accommodation site Rightstay.

South Africa-based Naspers Ltd is the majority owner of ibibo, with a 91 percent stake, with the rest being owned by China`s Tencent Holdings Ltd. Their combined stake is valued at about $600 million, according to the source.

MakeMyTrip had a market capitalization of about $861.3 million as of Monday`s close.

The online travel agency has been facing increased competition in its hotels booking business from established Indian companies such as Cox & Kings Ltd , Thomas Cook (India) Ltd and new entrant such as OYO Rooms. 

MakeMyTrip, which missed profit estimates for the last seven quarters partly due to higher marketing costs, is expected to report a second-quarter loss of 63 cents and revenue of $50 million, according to Thomson Reuters.

The company said on Tuesday that the ibibo deal would help "unlock meaningful synergies", but did not provide any deal value.

The online travel market in India is estimated to be about $10 billion in terms of gross booking value, according to an analyst tracking the sector.

MakeMyTrip shares rose as much as 56.4 percent to $31.90 on Tuesday, hitting a more than two-year high.

The combined company will command a market share of about 20 percent of the Indian online flight bookings, MakeMyTrip said on a call with analysts on Tuesday.

The combined company`s market share in online hotel and bus bookings will be in single digits, the companies added.

Naspers and Tencent will own 40 percent of MakeMyTrip after the deal closes by the end of December. Additionally, China`s biggest online travel service provider Ctrip.com International Ltd will have about 10 percent stake in the new company.

Ctrip.com said in January that it would invest $180 mln in MakeMyTrip via convertible bonds.

MakeMyTrip founder Deep Kalra will continue to be the executive chairman and chief executive of the new company.

Morgan Stanley advised MakeMyTrip on the deal, while Goldman Sachs was the adviser to ibibo and Naspers.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
GoibiboMakeMyTripacquisitionCtrip.comNasperTencenttourism and travelonline travel
Written By: Reuters
Updated: Wed, Oct 19, 2016
10:43 am
Delhi, Reuters
RELATED NEWS
CCI slaps Rs 392 crore penalty on MakeMyTrip, Goibibo, OYO CCI slaps Rs 392 crore penalty on MakeMyTrip, Goibibo, OYO
ICICI Bank Offer: Running out of cash? Here's how to fund your favourite vacation ICICI Bank Offer: Running out of cash? Here's how to fund your favourite vacation
ICICI Bank unveils multicurrency travel card with travel insurance up to Rs 10 lakh, flight benefits of Rs 20,000; here is how to get ICICI Bank unveils multicurrency travel card with travel insurance up to Rs 10 lakh, flight benefits of Rs 20,000; here is how to get
Planning a summer vacation trip? Book now and pay later with these options Planning a summer vacation trip? Book now and pay later with these options
Massive discounts on flight tickets: Get up to Rs 10,000 cashback; check details Massive discounts on flight tickets: Get up to Rs 10,000 cashback; check details

LATEST NEWS

Vivo X90, X90 Pro Launch today: Check specifications, features, camera and other details

Recognised startups not to face impact of proposed changes in income tax laws: DPIIT secretary

Budget 2023: Rail stocks continue to rise on the back of record railway capital outlay

Closing Bell: Nifty ends flat on Adani Enterprises woes; Sensex advances by 200 points on ITC, Infosys surge

Adani Enterprises and Adani Ports among top Nifty50 losers after the group shelves FPO

Sebi mulls regulatory framework for REITs, InvITs to issue depository receipts

Kendriya Bhandars begin selling flour or 'Bharat Atta' at Rs 29.50 per kg; NAFED, NFCC to start from 6 February

Gold Price Outlook: Is Rs 60,000 on cards? Up over 6% this year, MCX gold futures have 20% upside

TCS, Infosys, Wipro gain momentum; here's what experts recommend

India Vs Australia Schedule 2023: Ind v Aus Test match dates, venue, time table, squads, Live streaming, when and where to watch, other details

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV