China’s video giant Youku Tudou posts Q3 USD 68M loss, 120% increase from last year

Youku Tudou.001

China’s Youtube, Youku Tudou, on Wednesday released its unaudited financial results for the third quarter 2015. Youku Tudou posted net revenue of RMB 1.85 billion (US$291.8 million), a 62% increase from the corresponding period last year, and gross profit of RMB 311.5 million (US$49.0 million), a 36% increase from the corresponding period in 2014.

The company reported a net loss of RMB435.6 million (US$68.5 million), up from RMB197.6 million (US$31.1 million) at the same time last year. The loss ratio has increased by 120% year over year.

China’s e-commerce giant Alibaba has offered an all-cash deal to acquire the company. The Wall Street Journal reports Alibaba will pay $27.60 per American depositary share, a 35.1% premium over the Youku Tudou closing price for Oct. 15.

Alibaba invested USD 1.22 billion in Youku Tudou last April and held 18.3% of Youku Tudou’s circulating shares as of June 30th. Alibaba claims prominent shareholders in Youku Tudou, including CEO, Victor Koo, reached an agreement in support of the acquisition.

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