The total value of Youku shares rose to 5.2 billion dollars after Alibaba’s offer.
Chinese giant in the field of Internet commerce, Alibaba, announced that they have offered $ 4.2 billion for the acquisition of Youku Tudou.
This offer came after Alibaba invested $ 1.22 billion last year in the company which in China offers services similar to YouTube. People in Alibaba believe that the proposed acquisition will enable better integration of resources of both companies, and ensure the growth of Youku in the upcoming years.
Alibaba has offered $ 26.60 for each share of Youku Tudou so it could take over the remaining 82% of company that is not yet in their possession. This brings the total value of Youku shares to 5.2 billion dollars, which is much higher than their value was day before, when it was 3.99 billion.
The acquisition needs to be approved by Youku Tudou shareholders, but it has already been supported by company’s founder.