Youku Tudou gets going private proposal from Alibaba Group

Youku Tudou Inc. (NYSE: YOKU) said its board of directors has received a nonbinding proposal, dated October 16, 2015, from Alibaba Group Holding Limited for a going private transaction in which it would acquire all of the outstanding ordinary shares of the company, including ordinary shares represented by American depositary shares, that are not owned by Alibaba for USD26.60 per ADS in cash, subject to certain conditions.

The offer price set forth in the proposal letter represents a premium of approximately 30.2 percent over the closing price of the ADSs as quoted by the New York Stock Exchange on October 15, 2015, the last trading day prior to this announcement, and a premium of 44.5 percent to the volume-weighted average closing price of the ADSs as quoted by the NYSE during the last three months.

According to the proposal letter, Alibaba intends to fund the consideration payable in the transaction with its cash on hand.

The board has formed a special committee consisting of two independent disinterested directors, Jonathan Jia Zhu and Jixun Foo, to consider the transaction. The special committee will retain independent legal and financial advisors to assist it in this process.

Youku Tudou is a leading multi-screen entertainment and media company in China. It is an Internet television platform, enabling users to search, view and share high-quality video content quickly and easily across multiple devices.