Alibaba offers to buy all of video streaming company Youku Tudou

Reuters News
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Posted: Oct 16, 2015 6:11 AM

(Reuters) - Alibaba Group Holding Ltd <BABA.N> said on Friday it has offered to buy all of the shares of Chinese video streaming company Youku Tudou Inc <YOKU.N> that it does not already own.

Alibaba said its all-cash offer of $26.60 per American Depositary Share represented a premium of 30.2 percent to Youku Tudou's closing price on Thursday.

Alibaba currently owns 18.3 percent of Youku Tudou, the Chinese e-commerce giant said, having bought into the company in May 2014 as part of its push into the online video business.

Youku Tudou said some of its shareholders, including Victor Koo, the company's founder, chairman and chief executive officer, had agreed to support Alibaba's offer.

It said its board had formed a special committee comprising two independent directors to consider the offer.

Youku Tudou's New York-listed ADRs rose 19.9 percent to $24.50 in premarket trading, still below the offer price. Alibaba's shares were up 1.3 percent at $72.71.

(Reporting by Ismail Shakil in Bengaluru; Editing by Robin Paxton)