China's Top Two Online Video Firms Merge
Shareholders have approved a plan that will bring Chinese online video giants Youku and Tudou together in a deal estimated at more than $1 billion.
The stock-for-stock acquisition of Tudou by Youku, which was originally announced in March, will be completed in the third quarter and will see Tudou become a wholly owned subsidiary of Youku. The combined company will be called “Youku Tudou Inc." It will also be China's online video leader, with 36 percent of the market and an estimated user base of 450 million.
Reports in China speculate that the merger could spark a wave of consolidation in the country’s online video sector, which is highly fragmented.