Alibaba to pay $3.67bn for streaming site Youku Tudou

E-commerce conglomerate Alibaba Group Holdings will pay US$3.67 billion for outstanding shares of New York-listed online video-streaming site Youku Tudou, South China Morning Post reported, citing a joint statement from the companies. The all-cash transaction, expected to be completed in the first quarter of 2016, involves paying Youku US$27.60 per American depositary share, which represents 18 ordinary shares. The acquisition cost represents a premium of 35.1% to the stock’s closing price on October 15, a day before Youku announced it had received a proposal from Alibaba. Internet industry analysis firm iResearch has forecast mainland China’s online video market to post total revenue worth RMB90 billion (US$14.17 billion) by 2018.