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Alibaba Finds Another Place for Its Cash — China's Version of YouTube

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Chinese ecommerce retailer Alibaba is entering the online video space with an investment in Youku Tudou, the Chinese equivalent of YouTube.


The $1.2 billion stake comes from Alibaba Group Holding Limited and Yunfeng Capital, a private equity group founded by Alibaba executive chairman Jack Ma.The deal provides the groups with a 16% and 2% stake in the video site, respectively. Jonathan Lu, CEO of Alibaba, will take a seat on Youku Tudou's board of directors.



Alibaba has been working to diversify its business, investing in a variety of companies and industries. The position in Youku Tudou is another in a line of strategic moves aimed at Tencent, Alibaba's most powerful competitor. Together the companies dominate many aspects of China's 618 million Internet users. Read more...


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