In growing competition and higher operating cost, most of the travel portals are trying to reduce costs. The consolidation started happening in Internet domain as funding dried down. Launched in 2007, ibibo owns very popular redBus also & owned by Naspers and Tencents. Naspers owns 91% & Tencents owns 9% of ibibo. Post merger Naspers and Tencents will own 40% of combined entity whereas Ctrip.com will own 10% of combines entity in return of $180 million, 5 year convertible notes given to Ctrip by MMT.
The move will lead both the organization to go for realignment and that will result in loss of thousands of jobs.
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