Alibaba and Yunfeng are paying $30.50 per American Depositary Receipt, or a 26.3% premium to Youku Tudou's close on Friday of $24.14.
Alibaba will hold around 16.5% in Youku and Yunfeng 2%.
The deal is the latest in a series of acquisitions that Alibaba has carried out over the past few months, spending at least $2.7B.
Youku Tudou ADRs are +14.75%. (PR)