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Alibaba Wants To Completely Own China’s Version Of YouTube

NEW YORK (TheStreet) -- Alibaba (BABA) announced a proposal on Friday to take over full control of Youku Tudou, a YouTube-like video streaming service in China.

Alibaba initially invested in Youku in May of last year, taking a $1.22 billion stake in the company, which translates to 18.3% ownership. Alibaba now wants to buy the rest of the company as well, at $26.60 per share, or $3.6 billion total. The offer would value the entire company at $4.2 billion.

If the deal goes through, Alibaba plans to boost the current partnership between the video streaming platform and its e-commerce platform. Alibaba is already testing a way for consumers who are watching a show on Youku to be able purchase a product from that show on Alibaba at the same time. There are also other advertising and marketing opportunities for the two companies to work on together, advancing Alibaba's marketing capabilities through its Alimama services.

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"The acquisition makes strategic sense as Alibaba is building out its media...