The Alibaba Group, the Chinese e-commerce giant, announced
Friday that it has reached a deal to buy Youku Tudou, one of China's
leading online video sites, which is said to reach more than half a
billion users.
Alibaba will pay roughly $3.7 billion for the company. Alibaba first announced plans to buy Youku Tudou last month, but there was some back-and-forth over the price.
"We are confident that we will strengthen our market position and
further accelerate our growth through the integration of our advertising
and consumer businesses with Alibaba’s platform and Alipay services,"
Victor Koo, chairman and CEO of Youku Tudou, said in a statement.
Alibaba raised $25 billion
in its IPO just more than a year ago, giving it the distinction of
raising the world's largest public offering. Since then, the company has
used that war chest to spread its footing through acquisitions and
investments in businesses like Jet (for e-commerce in the U.S.), Lyft and Didi Kuaidi (for ride-hailing around the world) and Peel (for the connected home).
Those investments may help broaden Alibaba's market beyond China,
which investors worry is facing a slowdown. Alibaba's stock was hit hard
in recent months by those concerns, though it has been on the upswing
this week after beating earnings.
Saturday, November 7, 2015
Alibaba buys China's version of YouTube for $3.7 billion
10:09:00 AM
B'ness Tech