The merger of Meituan and Dazhong Dianping is true. If you are hungry, you will join

It is reported that the framework agreement for the merger of Meituan and Volkswagen Dianping has been confirmed and has entered the stage of soliciting shareholder approval and will be officially disclosed within a week.

The rumors about the merger of Meituan and Dianping can be said to be a "turnaround" today. In the morning, media revealed that the framework agreement for the merger of Meituan and Volkswagen Dianping has been confirmed and has entered the stage of soliciting shareholder approval and will be officially disclosed within a week. Subsequently, many media called the relevant departments of Meituan and Dianping based on this rumor, and both parties said that they were unaware of the merger. In the afternoon, insiders were quoted as saying that the merger of Meituan and Dianping was true. The merger had been reported to relevant departments for approval. Investors of Meituan and Dianping had confirmed the merger. After the merger, the CEO of the new company would be Wang Xing. In addition, the insider said that Ermao, which has just completed a new round of financing, will also join the merger. Meituan Takeout and Ermao have always been in high competition, and Dianping is also an Ermao shareholder.

In addition, the media previously stated that after the merger, the valuation ratio between Meituan and Dianping of the new company will be 7:4. The insider also confirmed the pricing ratio. In addition, the new company has a valuation of up to US$17 billion, and a new round of financing of US$2 billion to US$3 billion will be completed after the merger.

Recently, public opinion has been discussing the issue of Meituan's financing. Meituan executives said that the financing is in progress and will be announced in the near future. However, it is not the first time that it has been rumored today that Meituan is about to merge with Dianping. Both sides have previously denied this rumor.

In terms of current business development, Meituan and Dianping are also becoming increasingly differentiated. Meituan focuses on hotels, movie tickets, takeaways and other fields, while Dianping focuses on catering as its core areas and makes some efforts in low-frequency services. In addition, on different occasions, Dianping executives have said that they will make efforts to degroup purchase the flash benefit business.

However, it does not mean that the competition between the two sides is becoming dull. In first-tier cities, Meituan and Dianping are facing competition from New Word-of-mouth and Baidu Nuomi. In third-and-fourth-tier cities, Meituan's former base camp, Baidu Nuomi and Dianping are both entering, competition in the entire local life service market is becoming fiercer. Data released today shows that the share of Meituan's group buying business is being eroded by several rivals.

The logic of the merger of Meituan and Dadian is exactly the same as that of Didi + Kuaidi, 58 Tongcheng + Ganji, and Qiancheng + eLong. In addition to reducing friction and reducing the speed at which money is burned, it is also to deal with Baidu's support of "spending 20 billion yuan" glutinous rice. In addition, we cannot take the 58 market combination lightly. According to habitual thinking, the two giants with first and second market shares have room for healthy development and independent listing. The merger of Meituan and Dadian, driven by their investors, shows that the industry is fiercely competitive and the giants have no choice but to stick together to warm up.

The details disclosed so far include the following three points:

1. Merger method

Meituan and Daidian's existing shareholders will inject their interests into the newly established overseas company (still adopting the VIE structure), with a ratio of roughly 7:4. This structure means that Dianping has temporarily shelved its plan to split the VIE back into A shares. However, given the many advantages of listing in A-shares, it is still very likely that the "New America" after the merger of Meituan and Big Point will choose A-shares.

2. The personnel arrangements

are similar to previous mergers, and "New America University" will adopt a "dual CEO" system. However, due to the large share of Meituan and the stronger Wang Xing, it is expected that the two CEOs will not have the same voice.

3. After the business

merger, Dianping's business focuses on low-frequency and high-customer unit price businesses, such as weddings, exhibitions, etc., and no longer participates in price wars and subsidy wars in the fields of high-frequency and low-customer unit price.

In addition to financial investors and teams, Tencent and Alibaba are both shareholders of "New Mida". This situation has occurred once after the merger of Didi and Kuaidi. Again, the competition is too fierce.

If "New America Big" comes out of nowhere, it will rewrite the O2O landscape: Baidu (glutinous rice) will have more difficulty fighting against Ali and Tencent, and the 58 market will also be difficult; since movie tickets are one of the main directions of Meituan, will Guevara's cooperation with the former public comment have a future?

Editor: yvonne