Chinese Online Video Giants Youku and Tudou announce merger
Updated: Jun 19, 2019
Major news outlets like Reuters and the WSJ just announced that China’s leading online video site Youku reached a stock deal to buy #1 competitor Tudou.
The new entity, which will be named Youku Tudou Inc., will become a huge competitor for Western counterparts Youtube and VEVO, rumored to be working towards a similar agreement.
Youku was always the biggest player in the field, with a market value 6 times bigger than Tudou’s. However, Tudou recently saw a major increase in its monthly visitors, bringing the numbers to over 300 million, thanks to referral views from everyone’s favorite microblog: Sina Weibo.
Thanks to the deal with Sina, Tudou recently went public and is now being bought by Youku. The merger should be completed in less than six months.
CEO of Mailman Andrew Collins stated “This is like a digital Thanksgiving filled with lots of juicy stories to come” and he further added “Watch out Youtube! If a giant like Youku acquires a giant in Tudou, this makes for a very large mouth to feed”.
Definitely threatening news for Western Online Video Titans.
Now let’s just sit back and see what happens!