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Alibaba to acquire China’s YouTube

  • Billionaire Jack Ma’s
    Chinese e-commerce giant Alibaba has announced a multi-billion-dollar deal to
    take over video streaming service Youku Tudou as it seeks to spread its online
    empire,
    Agence France Presse
    reported.
    • Billionaire Jack Ma’s
      Chinese e-commerce giant Alibaba has announced a multi-billion-dollar deal to
      take over video streaming service Youku Tudou as it seeks to spread its online
      empire,
      Agence France Presse
      reported.


    •  
    • 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 $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 $26.60,
      an offer that had a total deal value of about $4.6 billion.
    •  
    • 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.

     

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