Talks have begun over the acquisition of the Chinese home-sharing company Xiaozhu by Airbnb.
Editor’s Remarks: Airbnb is looking to step into the Chinese market by the best method possible, joining with an established Chinese competitor. China is notoriously difficult a market to enter as a Western company and several players with Chinese divisions often look to separate them as much as possible to alleviate volatility. The new Chinese firm is aiming for 500% organic growth by the end of the year and looks like a major deal to boost Airbnb’s presence. Airbnb has had several major successes over the course of 2016 and looks set to start 2017 as one of the top performers.
What to watch: Airbnb, Tujia, Xiaozhu, WeChat, Tencent