Alibaba now has almost all the Chinese online video sites, what does this mean for investors and direction of the acquiree?
Announced this week just before the big event ecommerce partying singles, the Chinese group of e-commerce group Alibaba and “Internet video group Youku” jointly announced that the two sides reached an agreement, under which Alibaba will acquire Youku Tudou-in cash.
Following the transaction, the shareholders of Youku Tudou, other than the current investment entity controlled by Alibaba, will be entitled to receive 27.6 dollars per American Depositary Share in cash.
Following the recommendation of an independent special committee of the board Youku Tudou, the Board of Youku Tudou has unanimously approved the transaction and recommends that shareholders of Youku Tudou vote to authorize the transaction as well.
Gu Yongqiang, president and CEO of Youku Tudou said they believe that this combination with Alibaba will maximize value for their shareholders Youku Tudou and significantly benefit their customers, users, and team . They are eager to work with Alibaba to expand their entertainment and multi-screen media ecosystem. They are convinced they will strengthen their market position and to further accelerate their growth with the integration of their advertising and business consumption with the platform of Alibaba Alipay and services. With the support of Alibaba, Youku Tudou will be able to improve their position as the leading multi-screen entertainment platform and media in China.
This transaction is expected to close in the first quarter of 2016. However, it is still subject to customary closing conditions.
After completion of the transaction, Gu will remain as chairman and CEO of Youku Tudou. In addition, Youku Tudou ADS will no longer be listed on the New York Stock Exchange.
