Alibaba is taking a minority stake in China’s largest online video site, Youko Tudou, as it prepares for its own blockbuster initial public offering in the US.
Youko Tudou said on Monday that the Chinese e-commerce group, together with its founder Jack Ma’s Yunfeng Capital, would jointly invest $1.2bn in the video site.
Alibaba will hold 16.5 per cent stake in Youku after the deal, with Yunfeng holding 2 per cent. Read more
Bids are expected by the end of this week for Hulu, the online video site owned by Disney’s ABC, News Corp’s Fox and Comcast’s NBC that is said to be looking for a price tag around the $1bn mark.
Its status as an aggregator of some of the most popular professionally-produced content on the web has reportedly attracted a host of suitors, from traditional distributors such as DirecTV to Peter Chernin, who helped found Hulu while at News Corp, and Guggenheim Digital Media, the well-funded Guggenheim Partners offshoot run by Ross Levinsohn, formerly of Yahoo. Some seem to be talking the price down, claiming unhappiness about the sellers’ terms.
Guggenheim has also been eyeing another of the biggest digital video properties, Vevo. It is more than two months since it was reported to be in negotiations about taking a controlling stake, but talk about Vevo’s future has since gone rather quiet. Read more
Who would buy a struggling video website, bogged down by lawsuits, when YouTube, Hulu and the BBC iPlayer seem to have the market sewn up?
Qlipso would, apparently, for the Israeli site has bought Veoh‘s assets after the latter filed for bankruptcy in February. One person with knowledge of the deal put the price at less than $20m – well south of the $70m investors including Goldman Sachs, Spark Capital and Intel Capital had pumped into Veoh. Read more