Alibaba, Yunfeng agree to buy $1.22 bln stake in Youku Tudou
HONG KONG, April 28
HONG KONG, April 28 (Reuters) - Alibaba Group Holding Ltd and a private equity firm co-founded by its executive chairman Jack Ma have agreed to buy a $1.22 billion stake in Chinese online video company Youku Tudou Inc.
Alibaba and Yunfeng Capital are paying $30.50 per American Depositary Receipt of Youku, or a 26.3 percent premium over the last traded price, Youku Tudou said in a statement on Monday.
The two companies will jointly own a 18.5 percent stake in Youku, whose on-line video services resembles Google Inc's YouTube.
Alibaba, which is preparing for a U.S. initial public offering, has conducted several mergers and acquisitions over the past six months or so totaling at least $2.7 billion.
Chinese private equity firm Yunfeng Capital was co-founded by Alibaba's Ma and is raising up to $1 billion in its second fund, Reuters previously reported. (Reporting by Denny Thomas and Elzio Barreto; Editing by Miral Fahmy)