Alibaba takes stake in China's online video platform Youku Tudou
Published on Apr 28, 2014 6:54 PM
SHANGHAI (AFP) - Chinese e-commerce giant Alibaba and a private equity fund backed by its founder Jack Ma will pay US$1.22 billion (S$1.53 billion) for a stake in China's leading online video platform Youku Tudou, the companies said on Monday.
The move comes before a huge US share offer by Alibaba, and as the company diversifies beyond its traditional online shopping business through a string of acquisitions.
Alibaba will hold a 16.5 per cent stake in New York-listed Youku Tudou while private equity firm Yunfeng Capital - co-founded by Mr Ma - will have 2.0 per cent, making Alibaba a strategic investor, according to a joint statement.
Mr Ma, who stepped down as Alibaba's chief executive officer last year but remains as chairman, said the deal would allow Alibaba to accelerate a strategy for offering digital entertainment and video content.
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