China's Big Web Deal: Five Key Numbers for Meituan, Dianping

  • Alibaba, Tencent affiliates merging sites for food, movies
  • China's location-based services market to reach $1.1 trillion

7.2 trillion yuan is how big China’s location-based services market is expected to be by 2017. Location-based services include restaurant bookings, food deliveries and movie-ticket purchases.

Photographer: Brent Lewin/Bloomberg

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:

$15 billion

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.

82 percent

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.

90 million

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.

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