if you can start from the layout of the entertainment industry, the integration of other businesses are good, Alibaba is really not just an electronic business platform
October 16th, Alibaba announced that it has issued an offer to Youku potatoes board, the price will be $26.6 a share of the latter. According to this price, Alibaba will pay about $4 billion 500 million for the acquisition.
Youku founder Victor Koo said, the company’s management, investment fund shareholders, as well as Youku founding shareholders of the acquisition expressed support. So, this time the acquisition rate may be more than those before the delisting of the stock will be much faster.
through the acquisition of Youku potatoes, Alibaba further enhance their discourse in the entertainment industry. In the face of American investors, they can also confidently said: "we are not a simple business platform, please don’t take the apple and the apple tree comparison".
just, the logic of the process there are a little around, buy a video site, it may be just like Ali bought the same year Gao De, UC, slowly absorbed, integrated business began.
compared to the then shares, Youku potatoes look cheaper
Pay per share compared with a year ago,
buy 18.5% stake Youku potatoes at the price of $30.5, this time Alibaba offer a lot lower, $26.6 cheaper than before 12.8%.
this is not because Youku potatoes stocks become cheaper, before the tender offer, Youku potatoes price of $20.43. Prior to the release of the last stake in the news, Youku potatoes price is $20.51.
a more reasonable explanation is that a year ago, Alibaba shares Youku potatoes, Alibaba is catching up with the NYSE NYSE sprint. In order to attract investors and raise the price listed at the Alibaba, the Alibaba want to through a large number of acquisitions to the Alibaba’s stock becomes more valuable, whether this is the value of the book or the meaning of strategy.
more than a year later, there is no pressure on the listing of Alibaba once again face Youku potatoes, naturally do not want such a high price. In addition, Youku potatoes more than a year of performance is not particularly good, this may be a reason to reduce the price of Alibaba.
from the stock point of view, Youku potatoes shares in April 2014 after all the way down. March this year, Youku potatoes stocks reached a minimum of $12.36 level, less than half of last year’s share price in April. Then, while Youku potatoes stock was in Iqiyi and red potatoes Youku merger rumors to the $30 price.