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Youku Tudou announces $1.22 bn investment led by Alibaba Group
MUMBAI: Chinese internet television company Youku Tudou has entered into definitive agreements with a joint investment vehicle of Alibaba Group Holding Ltd (“Alibaba”) and Yunfeng Capital, pursuant to which Alibaba and Yunfeng Capital, through the joint investment vehicle, will invest an aggregate of approximately $1.22 billion to purchase a number of Class A ordinary shares from the company.
Alibaba and Yunfeng Capital will indirectly hold approximately 16.5 per cent and two per cent respectively, of the total issued and outstanding shares of the company on a fully-diluted basis determined under the treasury method, after taking into account the shares to be issued in the transaction. The transaction is expected to close in the near future, subject to the satisfaction of customary closing conditions.
Jonathan Lu, Chief Executive Officer of Alibaba, will join Youku Tudou’s board of directors upon completion of the transaction.
Youku Tudou chairman and CEO Victor Koo said, “We are very pleased to have Alibaba as our strategic investor. Alibaba’s investment will strengthen Youku Tudou as China’s largest online video platform and further differentiate our services and user experience. It will help us continue to build an immersive cultural entertainment platform that integrates online and offline entertainment.”
Alibaba executive chairman Jack Ma said, “We are excited to cooperate and work closely with Victor and his team to support their innovation in this key emerging space as well as accelerate our digital entertainment and video content strategy. This is an important strategic initiative that will further extend the Alibaba ecosystem and bring new products and services to Alibaba’s customers.”