according to the agreement between the two parties, the two companies will maintain brand independence, and the website and team will continue to develop and operate independently.

1.58 After the strategic investment of Tongcheng Jiji.com, the contractual effect of both parties will be strengthened, including reducing market investment to improve the industry profit rate, and continuing to deepen the layout in the industrial chain to promote the upgrading of business model

2.58 At the business level, Tongcheng and Jiji.com both rely on the reputation and popularity in the local market. In addition to placing keyword advertisements on Baidu, both parties have been placing advertisements in various local media for a long time, including TV broadcasts, bus building advertisements, etc.

3. After years of fierce competition, strategic investment in 58 cities will help to control the costs of both parties, improve profitability, and at the same time strengthen synergy, further layout in the direction of O2O, and deepen the original business model.

Extended information:

Strategic merger. On April 15th, 215, 58 Tongcheng and Jiji.com merged.

On April 17, 215, 58 Tongcheng announced that the company strategically invested in the classified information website Jiji.com.. According to the final agreement, 58 Tongcheng will receive 43.2% of the fully diluted shares of Jiji.com with 34 million ordinary shares (17 million ADSs) and 412.2 million US dollars in cash.

58 Tongcheng merged with competitor Jiji.com, and said that the two companies had reached a memorandum of understanding in, and the two sides would announce the transaction.

after the merger of the two companies, Yao Jinbo, founder and CEO of 58 Tongcheng, and Yang Haoyong, CEO of Jiji.com, will serve as co-CEOs of the merged new company.

as a market leader, the scale of 58 cities is about twice that of the market. The two companies hope to reduce huge marketing expenses through merger. It is reported that in 214, the marketing expenses of 58 cities increased by 223% to 73.4 million US dollars, accounting for 28% of the revenue. 58 The increase of marketing expenses in the same city is as high as 223%, which easily exceeds the company's 81.8% revenue increase.

in addition, TheStreet rating team gave 58 stocks in the same city a "Sell" rating with a rating score of "d". TheStreet pointed out in an investment report, "We give 58 cities a' sell' rating because there are some concerns: we believe that 58 cities should have greater influence rather than just being reflected in advantages.

compared with most stocks concerned, it may be more difficult for investors to achieve positive results in 58 cities. The company has exposed weaknesses in many areas, such as net profit, unsatisfactory valuation growth, and weak earnings per share growth. "

Reference: Phoenix Science and Technology -58 merged with Jiji.com