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.