News: The company currently holds a 18.3% stake in Youku Tudou.
Alibaba is offering to acquire the rest of the shares in Chinese video streaming firm Youku Tudou that it does not currently own for $4.6bn.
Alibaba, which currently holds a 18.3% stake in Youku Tudou, intends to buy the remaining shares for $26.60 per American depositary share in an all-cash transaction.
The proposed transaction will expand the existing partnership between the companies, and combines Alibaba’s data-driven platforms in e-commerce, media and advertising with Youku’s digital video franchise.
Under the proposal, Youku’s founder Victor Koo will continue to lead the company as its chairman and CEO.
Alibaba CEO Daniel Zhang said: "We believe that the proposed transaction, with tighter integration of our resources, will help Youku achieve exciting growth in the years ahead by leveraging Alibaba’s assets in living-room entertainment, e-commerce, advertising and data analytics.
"Digital products, especially video, are just as important as physical goods in e-commerce, and Youku’s high-quality video content will be a core component of Alibaba’s digital product offering in the future."
Alibaba’s proposal is being supported by the founding shareholders of Youku, including Victor Koo, Chengwei Capital and their affiliates.
Youku Tudou’s Internet television platform allows users to search, view and share high-quality video content rapidly across multiple devices.