China's Big Web Deal: Five Key Numbers for Meituan, Dianpingby
Alibaba, Tencent affiliates merging sites for food, movies
China's location-based services market to reach $1.1 trillion
China’s two biggest Internet companies, Alibaba Group Holding Ltd. and Tencent Holdings Ltd., are merging their group-buying affiliates. Here are some key figures:
The value of the company formed by combining Alibaba-backed Meituan with Tencent affiliate Dianping, according to people familiar with the matter. That would mark the largest merger in China’s Internet industry based on combined valuations. Mergers and acquisitions in China driven by Alibaba and Tencent reached $58.4 billion this year, as more companies try to align forces to root out competitors.
7.2 trillion yuan
That’s how big China’s location-based services market is expected to be by 2017, according to Internet researcher IResearch. That compares with a market size of about 6 trillion yuan for this year. Location-based services include restaurant bookings, food deliveries and movie-ticket purchases.
The combination would create a dominant group-buying business in China. Meituan accounted for 52 percent of the group buying market in the first half of this year, followed by 30 percent for Dianping and about 14 percent for Baidu Inc.’s Nuomi, according to researcher Analysys International.
1 trillion yuan
The transaction volume that Meituan expects to see by 2020, founder Wang Xing said in January. Meituan had more than 20 million active daily mobile users and operated in about 1,000 cities. Wang and Dianping counterpart Zhang Tao will run the new company as co-chairmen and co-chief executive officers.
Number of user-generated reviews on Dianping’s sites, which are similar to Yelp Inc. Dianping operates in more than 2,500 cities and 200 countries, including the U.S., according to its website.