Tudou shares fall on rumors of more resignations

The resignation of Tudou’s (TUDO.NASDAQ) chief operating officer following the company’s merger with online video giant Youku (YOKU.NYSE) in March may prompt others to follow suit, South China Morning Post reported, citing industry experts. “The two companies used to be rivals but are now one company. There are inevitably some overlapping departments,” said Hong Bo, an IT commentator. Although the video-sharing websites will both continue to be maintained, some overlapping management could be made redundant. “Even [Gary] Wang Wei, the chief executive of Tudou, could possibly leave as the new company can’t have two CEOs,” Bo said. News of the resignation saw shares of both US-listed Chinese firms fall, with Tudou shares declining 4.6% and Youku shares dipping 5%.