Youku Tudou To Be Acquired By Alibaba
Alibaba all set to acquire Youku.com in an all cash based transaction.
Alibaba Group Holding is the power house and a giant of the Chinese tech industry which can single handedly change the dynamics of the industry. The company has the power to invest, acquire, or buy any new startup or established business in the country or in any part of the world. The value of the company is worth at a massive $220 billion. The Chinese tech giant is continuously working to bolster its domestic and international market presence as the time passes by.
Alibaba Group is constantly looking for opportunities to invest in the Chinese startups and businesses as well as the international businesses. According to recent news, the company is all set to invest and purchase Youku Tudou in the coming times. It is believed that both parties have agreed to advance their negotiations and turn the deal into a definitive merger agreement. As the sources suggest as of yet, the affiliate of Alibaba has made a full cash transaction to carry out the acquiring process of Youku Tudou.
China is set to become the biggest tech industry in the coming next two to three years over taking United States who currently is the leader. But China has companies that are capable enough to provide users with an alternate option such as Alibaba.com, Tmall.com, Youku Tudou etc.
Youku Tudou is considered as the YouTube of China. The video streaming website has video of all genres in its data base and apart from the genres they are not only confined to the Chinese language or territory. The music, movies, and videos belong to all languages and from all countries such as India, United States, Germany, France, Italy, and United Kingdom. Therefore, it is a big video streaming website and got major traction from the time when the Chinese government decided to ban YouTube in the region. It will not be wrong to say that the Chinese YouTube has done well to keep users happy.
According to a source, “Alibaba has agreed to pay $27.6 in cash per each American Depositary Share (ADS) to each Youku Todou shareholder. Its offer shows a hefty premium of approximately 13% over Youku Todou last closing price. The proposed transaction is expected to complete by the first quarter of next fiscal year.”
Alibaba proposed to Youku.com for a possible merger option on October 15 and asked it to go private. The company is quite happy with this deal.