Navigate this market better. Subscribe for FREE stock alerts and information.

Friday, October 16, 2015

Alibaba offers to purchase all of 'China's YouTube', (NYSE: YOKU)

Alibaba Group Holding Ltd offered to purchase all of the shares of Youku Tudou Inc that it does not already own in a deal that would value the Chinese video streaming company at about $5.2 billion.Alibaba already owns 18.3 percent of Youku Tudou - sometimes nicknamed China's YouTube - having bought into the company in May 2014 as part of its push into online video. It intends to take the company private. The Chinese e-commerce giant 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.Youku Tudou's New York-listed stock rose 23 percent to $25.05 in premarket trading on Friday, still below the offer price.

Youku Tudou Inc. is an Internet television company in the People's Republic of China. Shares of YOKU remained unchanged at $20.43. In the past year, the shares have traded as low as $11.85 and as high as $31.50. On average, 1704400 shares of YOKU exchange hands on a given day and today's volume is recorded at 304910.