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Rumor: Youku Tudou to Spin Off Soku

Zol.com.cn, 8/04/12

According to a source close to the company, Chinese online video operator Youku (NYSE: YOKU) will not only announce the company's "Youku + Tudou" dual brand strategy at the company's upcoming August 20 shareholder meeting, but will also announce that the company's video search engine Soku will be spun off as an independent company supported by both Youku and Tudou.

The merger between Youku and Tudou has created one of the largest user-generated content (UGC) libraries in the industry. According to the source, because UGC is fragmented and unrelated, it faces the challenge of low user stickiness. Youku hopes that focusing on Soku's search engine will compensate for this disadvantage.

Keywords: vertical search spin-off Internet online video video search Youku Tudou UGC Soku YOKU online search

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