For Internet entertainment Americans go to
YouTube or Hulu, but how about for the Chinese? Well the answer is Youku and Tudou. These two companies have recently been
competing against each other and it has the cost has been millions. Recently they have come to the
conclusion that if they combined forces they would reduce the cost of
competition by saving on rights to video
content and attracting to advertisers.
Youku lost 49.6m yuan, which is$7.9m and Tudou lost 148.9m yuan last
year. This merger will help these
two companies save between $50m to $60m over the next 18 months. For this deal to happen Youku is to
acquire Tudou via a stock swap deal valued at $1bn. The text also said, “The merger will create the biggest
online video firm in China, the world's largest internet market.” I thought this was interesting because
if you see what they are watching we can learn more of their humor and be able
to adapt better to their culture.
http://www.bbc.co.uk/news/business-17348393
Robert Ostler
http://www.bbc.co.uk/news/business-17348393
Robert Ostler
Business is business all over the world. I'm going into a job that focuses exclusively on advisory deals just like this and I'm actually in Newport Beach right now at a conference connecting those seeking capital and those seeking to invest capital. I think it's great that China is learning to use synergies to cut costs and improve the quality of their products to the public. The fact that complex transactions like this are occurring signals to me that China's economy is becoming more and more sophisticated and able to compete on all facets of business. That's great for them and great for the world's economy.
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