Alibaba has offered to buy all of the video-streaming company Youku Tudou
Sean Gallup/Getty ImagesJack Ma.
Alibaba Group Holding Ltd said on Friday it had offered to buy all of the shares of the Chinese video-streaming company Youku Tudou Inc. that it did not already own.
Alibaba said its all-cash offer of $26.60 per American Depositary Share represented a premium of 30.2% to Youku Tudou's closing price on Thursday.
Alibaba owns 18.3% of Youku Tudou, the Chinese e-commerce giant said, having bought into the company in May 2014 as part of its push into the online video business.
Youku Tudou said some of its shareholders, including Victor Koo, the company's founder, chairman, and CEO, had agreed to support Alibaba's offer.
It said its board had formed a special committee made up of two independent directors to consider the offer.
Youku Tudou's New York-listed ADRs rose 19.9% to $24.50 in premarket trading, still below the offer price. Alibaba's shares were up 1.3% at $72.71.
(Reporting by Ismail Shakil in Bengaluru; Editing by Robin Paxton)
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