Alibaba will buy video service Youku Tudou for $4.8 billion

Moscow. On 6 November. Chinese Internet giant Alibaba Group reached an agreement to purchase shares of the video service Youku Tudou (81,7%) of $4.77 billion, reports Bloomberg.

Alibaba will pay at $27.6 for each share of the company, which is 35% more quotes at market close on 15 October, when it became known about negotiations between firms. Alibaba originally offered for paper Youku $26,6.

C given that the balance of Youku are funds in the amount of $1.1 billion, the deal cost Alibaba $3.7 billion, it is Expected that the transaction will be closed in the first quarter of 2016.

The acquisition of the video service will enable Alibaba to broadcast American films and TV series for an audience of more than a third of the population of China. According to the China Internet Network Information Center, as of June, China’s 461 million people watched videos online, and the number of mobile users among them (354 million) exceed the population of the United States.

During the preliminary trading in new York on Friday, Alibaba shares rose in price by 0.4%, while the quotations of Youku surged by 10%.