Alibaba’s entertainment unit transfers Youku shares to subsidiary Tudou · TechNode

Alibaba’s entertainment unit transfers Youku shares to subsidiary Tudou · TechNode
Alibaba Digital Media and Entertainment Group, the media and entertainment arm of Alibaba, has transferred all of its stakes in video streaming platform Youku to a subsidiary that operates video streaming platform Tudou. This is a normal adjustment within the company, Alibaba told local media on Wednesday. However, industry experts believe the move could underline the reduced importance of Youku, which has continued to bring in losses, in Alibaba’s business priorities. The change comes at a time when Alibaba is seeking to exit media firms as the Chinese government’s scrutiny of the media and technology industry intensifies. China’s top two online video companies, Youku and Tudou, merged in 2012 to create an industry leader which owns more than one-third of the market. Alibaba acquired the entity in a $4 billion takeover in 2016.

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