Alibaba Group Holding Limited has entered into a definitive merger agreement to acquire Chinese online video platform Youku Tudou Inc. at slightly improved price in a deal valued around US$4.8 billion, according to a company announcement.
Alibaba will acquire the remaining 81.7% stake of Youku Tudou that it does not already own for US$27.60 per American Depository Share (ADS), compared to US$26.60 per ADS it offered in October.
The new price represents a premium of 35.1% over the closing price of Youku Tudou before the announcement of the all-cash deal.
"We are eager to work with Alibaba to grow our multi-screen entertainment and media ecosystem," says Victor Koo, chairman and chief executive officer of Youku Tudou.
Koo will remain as chairman and chief executive officer of Youku Tudou, which will delist from the New York Stock Exchange after the completion of the transaction.
Youku Tudou’s board has approved the deal, but it is still subject to other closing conditions and is expected to close in the first quarter of 2016.