Ctrip’s Skyscanner Acquisition Highlights Growing Overseas M&A By China’s Internet Giants

Ctrip’s $1.74B acquisition of Scotland-based Skyscanner represented a major exit for Europe’s tech ecosystem. But the acquisition also marked the latest move by one of China’s leading internet companies to expand its international footprint through M&A.

Using CB Insights data, we compiled the M&A activity (excluding take-private transactions) of China’s 10 largest internet companies by market cap currently trading on US Exchanges. In particular, we looked at:

• Alibaba (& affiliate Ant Financial)
• Tencent
• Baidu
• JD.com
• Netease
• Ctrip
• Weibo
• Vipshop
• Sina Corporation
• 58.com

In total, the 10 companies have made just under 60 acquisitions since the start of 2011. But the geographic makeup of those acquisitions is starting to shift.

Between 2011 and 2013, just 2 acquisitions were for companies not headquartered in China. Since the start of 2014, 8 acquisitions were for companies not headquartered in China. These include Tencent’s buyout of Finnish “Clash of Clans” developer Supercell, Alibaba’s controlling stake in Southeast Asian e-commerce firm Lazada, and Baidu’s controlling stake in Brazilian online-discount company Peixe Urbano among others.

Not all of the companies analyzed have made M&A moves abroad. Of the 10 companies and their affiliates, just four have acquired or taken a controlling stake in a non-Chinese company since the start of 2011. That’s not to say Chinese companies aren’t investing in companies abroad. As we’ve previously highlighted, Chinese investors have participated in 679 US tech investment deals totaling $18.2B since 2011.

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