Youku, Tudou Merge in 100% Stock-for-Stock Transaction
PR Newswire Asia, 3/12/12
Chinese online video site operators Tudou (Nasdaq: TUDO) and Youku (NYSE: YOKU) today jointly announced that they have signed a definitive agreement by which the two companies will combine in a 100% stock-for-stock transaction. Under the terms of the agreement, Youku and Tudou shareholders will own approximately 71.5% and 28.5% of the combined entity, respectively, immediately upon completion of the transaction. Upon completion, the combined entity will be named Youku Tudou Inc. Youku's American depository shares will continue to be listed on the NYSE under the symbol "YOKU."
Founder and CEO of Youku Victor Koo said, "We expect to see significant synergies across a number of areas including leveraging licensed content over a larger user base and realizing efficiencies in bandwidth management and other common expenses."
The combination has been approved by both companies' boards of directors and is subject to customary closing conditions including shareholder approvals by Youku's and Tudou's shareholders. Shareholders of Youku and Tudou, with representatives serving on the companies' respective boards of directors, have committed to vote in favor of the combination. The merger is expected to close in Q3 2012.
For the full press release, please click here.
Keywords: Victor Koo Internet NYSE online video Tudou Youku YOKU TUDO M&A
Sending
