Chinese e-commerce giant Alibaba, who already owns 18.3 percent of Youku Toudou’s US-listed shares, has offered to buy up the Chinese video streaming website’s remaining stock for roughly $3.6 billion in cash– this after subtracting the roughly $1 billion in cash that Youku has in hand.
The deal proposed entails a cash offering of $26.60 per share, which is 30.2 percent higher than Youku’s last NYSE closing price, The Associated Press reported via VOA News.
Youssef Squali, an analyst with Cantor Fitzgerald, was quoted by MarketWatch as having said that Alibaba Group Holding Ltd’s bid to buy the popular Chinese video site — which is reminiscent of Google’s YouTube — establishes the company as a “formidable player” in the realm of online video.
According to Squali, the move would allow the e-commerce company to establish a YouTube-Netflix-Prime hybrid with the possibility of original programming.
If Youku Toudou approves the offer, the acquisition would mark Alibaba’s fourth over the last two years aimed at expanding its video entertainment options.
Alibaba’s shares have dropped 14 percent over the course of the last three months.
Yahoo’s previously proposed spinoff of its 15 percent stake in Alibaba is likely to be delayed until January of next year or later, Fortune reports. News of the delay was announced by Yahoo CEO Marissa Mayer, who said that the company’s board and the Securities and Exchange Commission (SEC) both require additional time. In addition, she stated that the upcoming holidays will also likely add to the delays.
In a move to become the gateway into China, Alibaba has appointed country managers to run its offices in the United Kingdom and Italy. CNBC reports that the move is geared towards furthering the company’s expansion across Europe.
