Alibaba Group has proposed to buy all the remaining shares of Youkou Tudou.
Alibaba is about to become the sole owner of the Chinese video company, Youku Tudou. The Hangzhou-based organization today proclaimed that it has made a non-binding offer to obtain all remaining shares of Youku, including shares embodied by the American depositary shares – ‘ADS’ (each being a representative of 18 common shares) that it doesn’t currently possess for US$26.60 per ADS in all-cash deal.
The plan would succeed if the enterprise completes the required diligence and negotiates a jointly suitable conclusive takeover contract. In May 2014, the online trading giant made a primary tactical investment in Youku Tudou.
Alibaba news informed that it currently owns 18.3% of the remaining share capital of Youku-based on its public filings. Digital showbiz is a salient part of the Chinese e-commerce company’s plan to promote consumption of simulated goods and facilities. The offered deal would extend the current teamwork between the two businesses, and would integrate Alibaba’s unmatched information driven networks in online trading, promotion and media with Youku’s market-ruling digital video license to meaningfully speed up its expansion.
Alibaba news today reported that Youku Tudou’s huge customer base, particularly in mobile and its well-known networks with high user involvement, would establish one of the famous foundations of Alibaba’s digital show business policy. According to the e-commerce giant’s offer, Youku’s founder, Mr. Victor Koo, would endure to manage the enterprise as CEO and chairman.
Alibaba Breaking News affirmed that an official of Alibaba, Daniel Zhang, stated, "We are pleased to submit the proposal to the Youku board of directors, We believe that the proposed transaction, with tighter integration of our resources, will help Youku achieve exciting growth in the years ahead by leveraging Alibaba’s assets in living-room entertainment, e-commerce, advertising and data analytics.”
Alibaba’s executive vice chairman, Jack Ma, stated, “I’ve always admired what Victor has built, a closer partnership with Youku will give us the opportunity to support Victor and his leadership team to fulfill the dream of building the leading digital entertainment platform in China.”
Alibaba Group is formulating plan with the support of a number of Youku’s founders, including Chengwei Capital, Victor Koo, and associates. The Chinese video company stated that Mr. Victor has approved to pledge his stocks to the ecommerce platform and that its board would be forming a committee to discuss upon the proposal.
Youku Tudou’s market capitalization in the United States of America is $3,800,000,000, as of Thursday. Alibaba has disclosed its intent to acquire China’s leading online television network, which could enhance its image and credibility in the market.
Chinese market presents opportunities to business. Thus, organizations are striving to expand in the region. Alibaba also holds desires to grow beyond its core ecommerce functions. This deal would allow it to further progress in its endeavors.
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