Alibaba To Offer US$3.6 Billion For Youku Tudou Stake

October 16, 2015

NewsStandOnline.Net (16-October-2015): Alibaba Group Holding Ltd. offered to pay $3.6 billion in cash for its remaining stake in video website Youku Tudou Inc., according to a person familiar with the matter.

The person asked not to be named because the information hasn’t been made public. Alibaba is offering $26.60 a share in cash for the 81.7% of Youku shares it doesn’t already own, according to a statement.

Buying Youku Tudou, China’s most popular video-streaming website, would let Alibaba chairman Jack Ma deliver US films and drama series to more than one-third of the population. Ma toured California in October 2014, looking for content to beam to Chinese consumers.

Alibaba To Offer US$3.6 Billion For Youku Tudou Stake

Alibaba is paying a premium of about 30% to Youku Tudou’s Thursday closing price in New York. Youku, which has risen 15% this year, climbed 4.9% to $20.43 on Thursday. Alibaba advanced 4.7% to $71.78.

Like Alibaba, Youku is zeroing in on US studios for programming. The company, which mostly streams professionally produced content rather than amateur videos, plans to collaborate with US entertainment producers to create content that could be watched on its website, chairman Victor Koo said in an 27 October interview in Hong Kong.