Alibaba to Take Over China's YouTube

Published: 06th November 2015 09:38 PM  |   Last Updated: 06th November 2015 09:38 PM   |  A+A-

By PTI

BEIJING: Billionaire Jack Ma's Chinese e-commerce giant Alibaba today announced a multi-billion- dollar deal to take over video streaming service Youku Tudou as it seeks to spread its online empire.

Alibaba is snapping up Youku Tudou, China's equivalent to YouTube, in the latest of a string of acquisitions as it sets its sights far beyond its core eBay-style transactions business.

In a "definitive merger agreement", Alibaba will pay USD 27.60 in cash per US-traded American depositary share in Youku Tudou, the companies said in a statement, without giving the overall value.

The price is 35 per cent higher than the share price on October 15 just before the takeover bid was first announced.

The agreed price is slightly up from the first bid of USD 26.60, an offer that had a total deal value of about $4.6 billion (4.2 billion euros) according to Bloomberg News.

Alibaba already owns more than 18 per cent of Youku Tudou, which offers mostly professionally produced video content licensed from copyright holders.

Launching the takeover bid last month, Alibaba's Ma said he aimed to develop the hugely popular Youku Tudou as China's leading digital entertainment platform.

"We are confident that we will strengthen our market position and further accelerate our growth through the integration of our advertising and consumer businesses with

Alibaba's platform and Alipay services," said Youku Tudou chief executive Victor Koo in a joint statement with Alibaba.

The deal, unanmously approved by Youku Tudou's board, is expected to close in the first quarter of 2016 subject to approval by shareholders, the two firms said.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp