Alibaba Buys China’s YouTube

On Friday, Alibaba bought China’s “YouTube” for about $3.7 billion. Youku Todou needed this partnership with Alibaba, according to Summit Research analyst Henry Guo.

The current Youku Tudou Chief Executive Victor Koo will remain CEO of Youku Tudou after the deal closes in the first quarter of 2016.

As Koo said in a statement, “With Alibaba’s support, Youku Tudou’s future as the leading multi-screen entertainment and media platform in China has been firmly secured.”  

This is not the first venture into digital media investments in China for Alibaba. In March of 2014, it agreed to buy a controlling stake in ChinaVision Media Group Ltd for $804 million. They also agreed to pay $1 billion for a 20% stake in Vasu Media Holdings Co. Ltd.