Youku Tudou was acquired by Alibaba in 2015.

On November 6, 2015, Alibaba Group (NYSE: BABA) and Youku Tudou Group (NYSE: YOKU) announced that the two parties had signed a merger and acquisition agreement to acquire shares of Youku Tudou. According to this agreement, Alibaba Group will acquire China's leading

Multi-screen entertainment and media company - Youku Tudou Group.

The transaction will be conducted in an all-cash manner.

Upon completion of the transaction, Youku Tudou shareholders, excluding Alibaba Group, will be entitled to receive cash at a price of US$27.60 per ADS (American depositary receipt).

This price represents a 35.1% premium to Youku Tudou’s closing price on October 15, 2015 (that is, the day before Youku Tudou received Alibaba Group’s privatization offer), and is higher than Youku Tudou’s price in the three months before October 15, 2015.

The weighted average closing price represents a premium of 49.9%.

Extended information: Cooperation between the two parties before the acquisition: In April 2014, Alibaba teamed up with Yunfeng Fund to invest US$1.22 billion in Youtu. At the same time, Lu Zhaoxi became the director of Youtu. The supplementary agreement between the two parties at that time stipulated that Alibaba would be able to inject capital in the second phase.

At the same price, Youtu will give priority to Alibaba's investment.

As of June 30, 2015, Alibaba Group accounted for 18.3% of Youtu's outstanding shares.

After taking shares, Alibaba's Taobao, Tmall, Alimama, Alibaba Cloud and other businesses covering e-commerce, advertising, cloud services and big data have successively cooperated with Youtu to help Youtu develop cross-screen strategies and revenue diversification.

Create a synergistic effect.

In addition to advertising, Youtu helps merchants obtain more accurate users through Alimama's big data matching, thereby bringing about new profit models.

Koo Yongqiang once said that he hopes that every advertisement of Youtu can be directly entered into the Tmall store for consumption.

At the same time, with the help of Alibaba Cloud's services, Youtu also continuously optimizes DNS, resulting in continuous reduction of bandwidth costs and optimization of user experience.