Alibaba Group intends to buy out “Chinese YouTube” for $ 3.6 billion

    Alibaba Group, a Chinese holding, intends to acquire Youku Tudou, one of China’s largest video services, for $ 3.6 billion. With this proposal, the holding turned to the leadership of "Chinese YouTube." Youku Tudou did not reject the best offer.

    Alibaba plans to repurchase all Youku shares at a price of $ 26.60 apiece. This is 30% more than at the close of trading on Thursday, October 15. At the end of 2014, the holding has already acquired 18.3% of the shares of the video service. If the deal is closed, Youku will be assessed at $ 4.2 billion, believe experts Quartz edition.

    Youku founder and CEO Viktor Koo supported the proposal. He believes the deal will positively impact Youku. Now it will be considered by the board of directors of the video hosting, reports Reuters.

    According to the video service itself, its monthly audience is 580 million unique users. Alibaba intends to interest this audience with its own projects for the development of digital entertainment content and especially video content. Alibaba produces its own films at its own film company Alibaba Pictures.

    In the second quarter of 2015, Youku made a net loss of $ 55 million, as the company spends hundreds of millions of dollars to purchase licenses for famous films and shows in order to catch up with other video hosting sites - LeTVand Baidu's iQiyi service .

    Youku was launched in 2006. Currently, it is the only major video service in China that is not wholly owned by any of the corporations.

    Megamind wrote that in early September, the Alibaba Group launched a beta version of its own streaming video service Tmall Box Office. The company wants to repeat in China the success of American services - Netflix and HBO . Content will be purchased in China and other countries and produced in the company itself. A monthly subscription will cost users about $ 6.

    Also popular now: