Alibaba to Acquire Online Video Giant Youku Tudou


BEIJING/HANGZHOU: Alibaba Group is acquiring Youku Tudou in an all-cash transaction.

In October, Alibaba offered to acquire all outstanding shares of Youku Tudou that it does not already own for $26.60 per American Depositary Share (ADS). With the new offer at $27.60 per ADS, Alibaba will end up paying around $3.67 billion for the online video service. Following the completion of the transaction, which is expected to close in the first quarter of 2016, Victor Koo will remain as chairman and CEO of Youku Tudou.

“We believe this combination with Alibaba maximizes value for Youku Tudou shareholders and significantly benefits our customers, users and team,” said Koo. “We are eager to work with Alibaba to grow our multi-screen entertainment and media ecosystem. 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. With Alibaba’s support, Youku Tudou’s future as the leading multi-screen entertainment and media platform in China has been firmly secured.”