Two Chinese YouTube rivals join forces
Two Chinese YouTube rivals are joining forces. China's largest online video company, Youku.com, is acquiring the market's number two, Tudou, for about one billion dollars, both companies announced on Monday.
The takeover creates an industry leader that stands out from the competition in terms of size and number of customers in the world's largest Internet market with more than 450 million users. Until now, the two competitors have fought bitterly against each other. At the beginning of the year, Youku filed a lawsuit against Tudou for copyright infringement and demanded millions in compensation. Analysts welcomed the transaction. This is a step in the right direction in a very competitive market.
As with the Google subsidiary YouTube, videos can be uploaded, shared and rated via the Chinese platforms. Revenues are generated primarily through advertising. (SDA/RTD)
