Youku and Tudou announced to swap merger potatoes will withdraw from the market

Youku and potatoes will be merged with

 

Sina

technology news March 12th afternoon, youku.com and tudou.com jointly announced today the two sides in March 11th signed the final agreement, Youku and Tudou will be 100% of the convertible merger, the new company called Youku potatoes Limited by Share Ltd, tudou.com will withdraw from the market. Youku tonight held a conference call at 8 o’clock, Sina Technology (micro-blog) will micro-blog live conference.

according to the terms of the agreement, since the merger date, a class of ordinary shares and class B shares all issued and outstanding in the potatoes will withdraw from the market, share for 7.177 shares of class a common stock Youku potatoes; American Depositary Receipts (Tudou ADS) will be delisted and converted into 1.595 shares of Youku American Depositary Receipts (Youku ADS). Tudou ADS per share is equivalent to 4 shares of class B common shares of potatoes, Youku ADS per share is equivalent to the shares of Youku class a ordinary shares of 18.

After the merger of

, Youku shareholders and holders of American depositary receipts will have about 71.5% of the shares of the new company, the shareholders of potatoes and the United States depository receipts holders will have a new company about 28.5% of the shares. The new company will be named after the merger Youku potatoes Limited by Share Ltd (Youku Tudou Inc). ). Youku’s American depositary receipts will continue to trade on the New York Stock Exchange (micro-blog), code YOKU.

As of

EDT on March 9th closing, Youku NASDAQ shares closed at $25.01, potatoes price of $15.39, calculated according to the ADS exchange 1.595 shares of Youku potatoes per ADS, the stock value of Tudou will reach $39.89, compared with the current share price premium of 159%.

Youku founder, chairman and CEO Victor Koo said: "we will usher in a new era of network video China. Youku potatoes will have the largest user groups, the most diversified video content, the most mature video technology platform and the most powerful revenue conversion capabilities, and will bring the highest quality video experience."

potatoes founder, chairman and CEO Wang Wei said: Youku and potatoes on the development prospects of China’s video industry, and how to provide users with the best video experience, has established a common vision. The merger will further strengthen our leading position in the industry. Potatoes for the new company brings a household name of the brand, a lot of genuine video and user generated content, a large group of users, as well as a wide range of mobile video field partnerships and professional experience. We believe that Youku potatoes can bring the best video browsing, uploading and sharing experience for the majority of users. We will grow with our advertisers, content providers and industry partners."

after the completion of the strategic merger, potatoes will retain its brand and platform independence, help strengthen and improve Youku potatoes video >