Alibaba seeks Youku Tudou buyout
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Alibaba is bidding to buy the remaining shares in Youku Tudou, dubbed ‘China’s Youtube’ in a deal which values the company at US$5.2 billion.
The eCommerce already owns 18.3 per cent of the online video on demand service and says it will pay cash for the balance from its cash assets.
Youku Tudou is publicly listed and Alibaba has offered a premium of 30.2 per cent over the pre-offer share price. The bid already has the support of the site’s founder Viktor Koo.
Alibaba CEO Daniel Zhang said digital products, especially video, “are just as important as physical goods in eCommerce”.
“Youku’s high-quality video content will be a core component of Alibaba’s digital product offering in the future,” he said.
Questions & Answers
Q.What percentage of Youku Tudou does Alibaba already own?
What percentage of Youku Tudou does Alibaba already own?
Alibaba currently holds an 18.3 per cent stake in Youku Tudou, the online video on demand service. This bid is to acquire the remaining shares of the company.
Q.What is the total valuation of Youku Tudou in this acquisition deal?
What is the total valuation of Youku Tudou in this acquisition deal?
The deal to buy Youku Tudou, often referred to as 'China's YouTube', values the company at US$5.2 billion. This includes the premium offered over its pre-offer share price.
Q.Has the founder of Youku Tudou shown support for Alibaba's offer?
Has the founder of Youku Tudou shown support for Alibaba's offer?
Yes, the bid for Youku Tudou already has the backing of the site's founder, Viktor Koo. This support is mentioned as a factor in the acquisition process.
Q.Why does Alibaba consider video content important for its business?
Why does Alibaba consider video content important for its business?
Alibaba's CEO Daniel Zhang stated that digital products like video are as crucial as physical goods in eCommerce. He believes Youku's content will be a core part of Alibaba's future digital product range.