Alibaba Group will acquire the remaining 81.7 percent stake in Youku Tudou that it does not already own in the Chinese online video provider, in a new deal worth about US$3.7 billion.
The e-commerce giant has offered US$27.60 per American depositary share of Youku Tudou, slightly more than what it had offered in October, according to an announcement Friday.
The new offer represents a premium of 35.1 percent over Youku Tudou’s closing price on Oct. 15, the day before Youku Tudou announced that it had received a buyout proposal from Alibaba.
Alibaba held 18.3 percent of Youku Tudou as of Oct. 16, when it made its initial offer of US$26.60 per ADS.
The new offer values the rest of Youku Tudou at about US$4.8 billion, Reuters reported.
The acquisition will give Alibaba access to more than half a billion online video users, accelerating its push into the Chinese digital media market.
Any deal would include the US$1.1 billion of cash held by Youku Tudou, Alibaba’s chief financial officer, Maggie Wu, said in October.
Based on this, Alibaba will end up paying about US$3.7 billion under its revised offer.
Youku Tudou Chief Executive Victor Koo, who owns about 18 percent of the firm, will remain CEO after the deal closes in the first quarter of 2016.
“With Alibaba’s support, Youku Tudou’s future as the leading multi-screen entertainment and media platform in China has been firmly secured,” Koo said in a statement.
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