Alibaba to pay about $3.67 billion for Youku Tudou

Upon completion of the Transaction, the shareholders of Youku Tudou, other than the current investment entity controlled by Alibaba, will have the right to receive US$27.60 per American Depositary Share (“ADS”, each representing 18 ordinary shares of Youku Tudou) in cash.

The definitive deal will give Alibaba full control of the company.

Youku Tudou Inc. (Youku), formerly Youku Inc., is an Internet television company in the Peoples Republic of China.

Jack Ma’s dream of building a leading digital entertainment platform in China has moved one big step closer to reality following the merger of Youku Tudou into Ma’s rapidly expanding Alibaba empire. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more hard for investors to achieve positive results compared to most of the stocks we cover. Post opening the session at $24.45, the shares hit an intraday low of $24.29 and an intraday high of $24.775 and the price vacillated in this range throughout the day.

Based on this, Alibaba would end up paying about $3.67 billion under its revised offer. Alibaba and the parties which support the agreement own about 60.6 percent of the total voting power.

The deal, unanimously approved by Youku Tudou’s board, is expected to be concluded in the first quarter of 2016, subject to approval by shareholders, the two firms said.

We are eager to work with Alibaba to grow our multi-screen entertainment and media ecosystem. The stock garnered a place in the hold list of 1 stock Analysts.

“Alibaba’s platform and Alipay services”, said Youku Tudou chief executive Victor Koo in a joint statement with Alibaba. Youku Tudou Inc. (NYSE:YOKU) monthly performance stands at 23.45% while its year to date performance is 36.83%.

Morgan Stanley Asia Ltd advised Alibaba, while J.P. Morgan Securities (Asia Pacific) Ltd advised Youku Tudou’s special committee. That’s larger than the entire population of the U.S.

Alibaba Group’s mission is to make it easy to do business anywhere.