The Chinese association is approaching to confederate video offerings into a core e-commerce business most a approach Amazon has.
Alibaba Group Holding Ltd. has finished a buyout of Chinese streaming video hulk Youku Tudou, a companies announced on Tuesday, some 6 months after a e-commerce behemoth due a merger in Oct 2015.
The understanding was authorized by Youku Tudou shareholders in March.
Youku Tudou had traded on a New York Stock Exchange given 2010. Shareholders perceived $27.60 per American depositary share (ADS) in a buyout, that values a streaming video association during $4.2 billion. The cost tab resulted in Alibaba profitable about $3.67 billion in cash, given it had already owned 18.3 percent of Youku Tudou’s shares before to a agreement.
Youku Tudou, often dubbed « China’s YouTube, » commands a 21 percent share of a flourishing and fiercely contested Chinese online video market.
Alibaba, lead by Chinese billionaire Jack Ma, is approaching to find synergies between a use and a core e-commerce business — a plan that U.S. e-commerce hulk Amazon has followed with in-house streaming video offerings for a Prime customers. The streaming video square will also compliment Alibaba’s desirous film business subsidiary, Alibaba Pictures Group.