Breaking News Bar
updated: 4/28/2014 7:28 AM

Alibaba, partner invest $1.2B in China video site

hello
Success - Article sent! close
  • E-commerce giant Alibaba Group is expanding its online entertainment presence by investing $1.2 billion with a partner in video website Youku Tudou.

      E-commerce giant Alibaba Group is expanding its online entertainment presence by investing $1.2 billion with a partner in video website Youku Tudou.
    Associated Press

 
Associated Press

BEIJING -- E-commerce giant Alibaba Group is expanding its online entertainment presence by investing $1.2 billion with a partner in video website Youku Tudou.

Alibaba will gain a 16.5 percent stake in the company and its partner Yunfeng Capital will get 2 percent, Youku Tudou Inc. said Monday.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

China's major Internet companies have invested billions of dollars over the past year to expand beyond their core businesses by creating or acquiring entertainment, consumer finance and other services.

They are trying to retain users as Chinese Web surfers shift rapidly to going online via smartphones and other mobile devices, which is shaking up the traditional Internet markets.

"This is an important strategic initiative that will further extend the Alibaba ecosystem and bring new products and services to Alibaba's customers," Jack Ma, Alibaba's founder and executive chairman, said in a statement.

The investment will "strengthen Youku Tudou as China's largest online video platform and further differentiate our services and user experience," Youku Tudou's chairman, Victor Koo, said in the statement.

The most intense rivalry is between Alibaba and Tencent Holdings Ltd., an online games service.

Alibaba has been the biggest spender in the acquisitions race. In February, it offered $1.1 billion for the 72 percent of map service Autonavi that it doesn't already own. In March, it paid $804 to acquire control of ChinaVision, a Hong Kong producer of movies and TV programs.

Also in March, Alibaba invested $215 million in Tango, a mobile messaging service in Mountain View, California.

Tencent has invested in JD.com, China's No. 2 e-commerce service, taxi-hailing app Dididache and other services. The operator of China's most popular search engine, Baidu Inc., also has spent heavily to expand into online video and e-books.

Youku's smartphone app allows users to download movies and TV programs and has attracted millions of users.

Alibaba, based in the eastern Chinese city of Hangzhou, is one of the world's biggest Internet companies and says more than $150 billion worth of merchandise changes hands on its online platforms each year, more than Amazon and eBay combined.

The company announced March 17 it will have an initial public stock offering in the United States. It has given no other details but analysts say it could raise as much as $15 billion in the biggest IPO since Facebook.

Alibaba is privately held and doesn't release financial data. But Yahoo Inc., which owns 24 percent of Alibaba, said in its latest regulatory filing that the Chinese company's revenue for the first nine months of last year rose 60 percent over a year earlier to $4.9 billion.

Ma, the Alibaba founder, stepped down in March 2013 as chief executive but stayed on as chairman. He said at age 48 he was "a bit old" for the Internet.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here