China’s Youku to Buy Chief Rival Tudou
Chinese online video company Youku Inc. reached an agreement to acquire its chief competitor, Tudou Holdings Ltd., in a stock-for-stock transaction that will solidify the companies’ dominance of the sector.
Under the terms of the agreement, Youku shareholders and ADS holders will own approximately 71.5 percent of a newly combined entity, Youku Tudou Inc., and Tudou shareholders and ADS holders will own 28.5 percent. Together, the companies would control more than a third of China’s online video advertising market.
