Latest News:  
Beijing   Overcast/Shower    29 / 21 ℃  City Forecast

English>>China Business

Shareholders approve merger of video firms


08:18, August 21, 2012

BEIJING, Aug. 20 (Xinhua) -- Shareholders of Chinese largest online video providers -- Youku Inc. and Tudou Holdings Ltd. -- have approved the merger of the two companies.

The deal received shareholder backing on Monday, after the proposal was initially announced in March.

Once all procedures are completed, Tudou will become a privately held company and a wholly owned subsidiary of Youku. The business will be called "Youku Tudou Inc."

Both companies reported net losses last year. Tudou had a deficit of 511.2 million yuan for the fiscal year of 2011, while Youku reported Monday, losses of 172.1 million yuan.

As a result of the merger, Tudou's American depositary shares will no longer be listed on the Nasdaq Global Market.

The deal between the online video rivals came after the pair agreed to merge through a 100 percent stock swap to forge a combined organisation.

According to the agreement, Youku shareholders and holders of its American depositary shares will own about 71.5 percent of the new business, and those of Tudou will get the remaining 28.5 percent.

China's online video watchers totaled 325 million in 2011, accounting for 63.4 percent of the country's overall Internet users, official data showed.

Meanwhile, the market value of the online video industry almost doubled in 2011 to hit 6.27 billion yuan (about 1 billion U.S. dollars).

The industry is providing Internet users with a range of films, TV dramas and other video clips.

News we recommend:
Prices fly for Angry Birds' merchandise Wine imports give Chinese firms a hangover Spirited into the world of e-commerce
Firms should watch out for Internet threats China's firms bigger but not necessarily better China's beauty industry profits from a makeover
A ruling in Europe gives cheer to China  Online retailers declare cut-throat price war [Audio]Soccer in China Part III: The Business Side


Leave your comment0 comments

  1. Name


Selections for you

  1. F-15 fighters break sound barrier

  2. Japan stuck in neighbors' anger

  3. China's beauty industry profits from a makeover

  4. Ancient tales of filial piety

  5. Cute baby bear

  6. Sexy bikini special forces

Most Popular


  1. Commentary: Meet the new consumers
  2. Medicare row escalates with Romney's VP pick
  3. New UN envoy's appointment last ditch for Syria
  4. Stock markets remain a depressing drag
  5. ASEAN, China should maintain regional stability
  6. Be wary of West powers' attempt on Syria
  7. History proves Diaoyu Islands are China's territory
  8. Nation’s strength backs Diaoyu progress
  9. Who are tomorrow's consumers?
  10. Syrian neighbors different as crisis deepens

What's happening in China

Motorola's journey from the top

  1. Children join parents' petition for overdue wages
  2. Muslims celebrate end of Ramadan
  3. Three missing as leisure boat capsizes
  4. Mountain closed due to fire concerns
  5. Students for migrants during Qixi Festival

China Features

  1. Japan stuck in neighbors' anger
  2. Is China's low-cost era approaching its end?
  3. Chinese firms provided one-stop services in U.S.
  4. Don't store bread and biscuits together
  5. Eat ducks during Chushu (Stopping the heat)

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai