Business, Investments

Alibaba to acquire stake in chinese internet television company

Alibaba group along with Yunfeng Capital will be acquiring an equity stake in Youku Tudou for a combined investment of USD 1.22 billion. Both the companies will indirectly hold approximately 16.5% and 2.0%, respectively, of the total issued (707,250,870) and outstanding shares (13,869,990) of the company on a fully-diluted basis and at a purchase price of US$1.6944 per share.

Jonathan Lu, Chief Executive Officer of Alibaba, will join Youku Tudou’s board of directors upon completion of the transaction.

The deal will allow Youku Tudou to strengthen its online video platform. further, as stated by Jack Ma, Executive Chairman of Alibaba, this deal will extend the Alibaba ecosystem and bring new products and services to its customers.

Youku Tudou Inc. (NYSE: YOKU) is a China based Internet television company.  Its Youku and Tudou Internet television platforms enable users to search, view and share high-quality video content quickly and easily across multiple devices.

Last month, Alibaba has acquired a 35% stake in Intime Retail, an offline retail company with presence throughout China, for USD 692 million. Alibaba currently operates in China’s ecommerce market with its two major sites viz. Tmall and Taobao. Other recent investments of Alibaba included an undisclosed amount in Sina Corp’s Weibo (18% stake) and USD 800 million in ChinaVision Media Group. (60% stake).

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