Shareholders of Youku Tudou, the U.S. traded Chinese online video provider, will vote on its merger plan with Alibaba on March 14th and the approval will make it a fully owned subsidiary of Alibaba. In November last year, Alibaba announced that it would buy the company in an all-cash deal for $ 3.67 billion to acquire 82% of its shares. Alibaba already held an 18% stake in the company. Youku Tudou, touted as China’s “You Tube”, is valued at less than 5% of Alibaba’s market capitalization and it holds a leading market share of more than 21% in the growing Chinese online video market. Through Youku Tudou’s acquisition, Alibaba can add it to its e-commerce portfolio, get access to a large user base, and strengthen its already dominant position in Chinese e-commerce.

from Forbes – Tech http://ift.tt/1nAmPtK
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