Alibaba takes strategic stake in Youku Tudou
Rebecca Hawkes | 29-04-2014
China's Alibaba group and a private equity fund backed by the e-commerce giant's founder Jack Ma are taking a US$1.22 billion stake in Chinese online video platform Youku Tudou.
Alibaba will acquire a shareholding of 16.5% in Youku Tudou, while private equity company Yunfeng Capital will have a 2% stake. Jonathan Lu, chief executive officer of Alibaba, will also join Tudou's board.
"Alibaba's investment will strengthen Youku Tudou as China's largest online video platform and further differentiate our services and user experience," Victor Koo, Youku Tudou's chairman and chief executive officer, said in a statement.
Alibaba is preparing for an initial public offering in the US, which could raise more than $15 billion, according to Reuters.
The deal comes soon after Alibaba paid $804 million to take a 60% stake in the Hong Kong-listed film and TV producer and distributor ChinaVision Media Group.
Additionally, Ma and co-founder Simon Xie have recently agreed to take a 20% stake in cable TV company Wasu Media Holding.