×
You will be redirected back to your article in seconds

Alibaba Completes $4 Billion Takeover of Youku Tudou

E-commerce giant Alibaba has announced that it has completed its takeover of Chinese video streaming giant Youku Tudou.

The company revealed a “going private” transaction in November last year and Youku’s shareholders approved the sale in March.

Valuing Youku Tudou at $5.40 billion, Alibaba paid US$27.6 per New York Stock Exchange-listed ADS. As Alibaba and Jack Ma’s Yunfeng fund already owned close to a fifth of the company, Alibaba paid some $4 billion for the outstanding shares through its YK subsidiary.

Youku Tudou describes itself as a “leading multi-screen entertainment and media company in China” and as China’s leading Internet television platform.”

As China’s streaming companies have strived to build market share and improve technology, especially for mobile, their revenue growth has outstripped profitability. For the 2014 calendar year Youku Tudou reported losses of $135 million (RMB837 million), up from a loss of $92 million (RMB600 million) in 2014.

Youku Tudou’s most direct rival iQIYI is also loss-making and is the subject of a buy-out proposal, that would see founder Gong Yu and Baidu founder Robin Li pay $2.8 billion to extract it from parent company Baidu.

Alibaba has a growing portfolio of media interests including producer/investor Alibaba Pictures Group, a stake in Wasu Media, and, since this week, the South China Morning Post newspaper in Hong Kong. Integration of Youku Tudou points to connections with Yulebao, a consumer to business funding platform, online payment service Alipay and the ticketing systems that have recently been transferred from Alibaba to Alibaba Pictures.

More Biz

  • Alan Horn Bill Tanner

    Alan Horn to Keynote Variety Business Managers Elite Breakfast, Bill Tanner to Be Honored

    Bill Tanner will be recognized with Variety’s 2019 Business Managers Elite Award at the annual Business Managers Elite Breakfast presented by City National Bank, which takes place in Beverly Hills on Nov. 13. Co-chairman and chief creative officer of The Walt Disney Studios Alan Horn will be the keynote speaker in conversation with Variety editor-in-chief, [...]

  • Smoke haze covers the Sydney Harbour

    Australia's Seven West to Merge With Affiliate Prime Media

    Australia’s Seven West Media has agreed a deal to acquire regional broadcast group Prime Media. The move is a further step in the consolidation of Australia’s traditional media industry. The two companies announced on Friday that Seven will make the acquisition entirely through the issue of new shares to the owners of Prime. Both companies [...]

  • Ron Meyer

    Ron Meyer Files $10 Million Suit Over Forged Rothko

    NBCUniversal Vice Chairman Ron Meyer has filed a $10 million suit against two art dealers, claiming they sold him a forged Mark Rothko painting in 2001. Meyer accuses Susan Seidel and Jaime Frankfort of duping him into buying the work. According to the suit, he was told that it would be included in an official [...]

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein Seeks to Call Expert on 'Recovered' Memories at Rape Trial

    Harvey Weinstein’s attorneys are seeking to call an expert on “recovered memories” at his trial on rape and sexual assault charges. The defense has filed a motion asking to call Deborah Davis, a psychologist and professor at the University of Nevada at Reno. Davis is a frequent defense witness. She co-authored an article in 2006 [...]

  • Tekashi 6ix9ine Docuseries Coming From Showtime

    Tekashi 6ix9ine Docuseries Coming From Showtime and Rolling Stone

    Showtime Documentary Films today announced a new limited docuseries profiling controversial rapper Tekashi 6ix9ine. Titled “SuperVillain” and inspired by the Rolling Stone feature written by Stephen Witt, the three-part series will trace how a New York City deli clerk named Daniel Hernandez became superstar rapper Tekashi 6ix9ine — who racked up 2.6 billion streams and [...]

  • Fader Label Logo

    Fader Label Signs Two New Acts, Boosts Staff

    The Fader Label, home to Clairo, Matt and Kim and others, announced two new signings today along with three new hires on its staff. Charlie Burg and Zachary Knowles have joined the label’s talent roster, while Carson Oberg has come aboard as general manager, Yasmine Panah as project manager and Josh Hymowitz as label coordinator. They [...]

More From Our Brands

Access exclusive content