Youku.com (YOKU -7.4%) and Tudou (TUDO -9.8%) crash after it's learned Tudou COO Evelyn Wang has resigned, supposedly to "pursue personal development opportunities elsewhere." Tudou asserts the resignation won't affect its planned merger with Youku, which stands to create a Chinese online video behemoth.
Youku.com (YOKU +2.5%) and merger partner Tudou (TUDO +1.9%) trade higher after JPMorgan starts coverage on Youku with an Overweight and $30 PT. The firm is bullish on a general shift in Chinese ad spending from TV to online video. It views upcoming ad rate hikes and inventory expansion, a favorable content amortization schedule, and the achieving of quarterly profitability in 2013 as positive catalysts.
Youku.com (YOKU) signs an agreement with Comcast for the video-on-demand rights in China to NBCUniversal's large library of titles. The company has previously signed deals with a number of other major studios to line up content for their 300M online viewers.
Youku.com (YOKU -4.3%) and merger partner Tudou (TUDO -3.9%) sell off after Youku announces CFO Dele Liu has been kicked upstairs to President, and that his old job will go to finance SVP Michael Xu. Victor Koo remains chairman and CEO. The many accounting scandals that have hit Chinese ADRs has made the Street jittery about any unexpected CFO transition. (PR)
Youku.com (YOKU +3.4%) and merger partner Tudou (TUDO +2.8%) rally after Nomura's Jin Yoon reports on a recent meeting with Youku's management. Among management's comments: Bandwidth costs are expected to remain steady; Youku has seen a "rationalization pattern" for content acquisition prices, which have recently soared; and Tudou's ad prices remain ~20% below Youku's.
Overlooked in Apple's (AAPL) long list of Mac and iOS announcements yesterday was the company's release of several iOS features aimed specifically at Chinese users. The features include not only the expected addition of Baidu (BIDU) search, but also the integration of Sina's (SINA) Weibo and merging video sites Youku (YOKU) and Tudou (TUDO), as well as Chinese-language support for Siri. Apple's China sales soared 3x Y/Y in the March quarter to $7.9B, and made up 20% of its sales.
Youku.com (YOKU +9.8%) and Tudou (TUDO +10.1%), whose planned merger will create a Chinese online video giant, rally strongly following Tudou's Q1 beat. Tudou's revenue surged thanks to a 63% Y/Y increase in online ad sales, and a 53% increase in mobile service sales. However, in a sign monetization may be lagging traffic growth, bandwidth costs amounted to 51% of revenue, up from 39% in the year-ago period. (PR)
In response to Youku.com (YOKU) and Tudou's (TUDO) planned merger, which stands to create a dominant player in the Chinese online video market, Sohu (SOHU), Tencent (TCEHY.PK), and Baidu's (BIDU) Qiyi video site are planning to pool their resources to purchase content, as well as share their video libraries. The news comes 2 days after Youku announced a new deal with CBS.
Youku.com (YOKU -3.8%), continuing its efforts to increase its professional content arsenal, has secured exclusive Chinese online distribution rights from CBS for 2 seasons of Survivor and America's Next Top Model. The shows are being offered on an ad-supported basis, though speculation has grown that Youku and its rivals will opt for a pay-per-view model to cope with rising content costs.
China video sites could turn to a pay-per-view model as advertising sales continue to slump, according to media execs. After Apple set the tone by enticing consumers to pay premium prices for content, tech companies such as Tudou Holdings (TUDO -1.7%), Youku (YOKU -1.6%), Sohu.com (SOHU +3.3%), and Baidu (BIDU +4.1%) see PPV as a way to recoup the higher costs of acquiring content.
Youku Tudou Inc is an Internet television company in china. Its internet television platform enables consumers to search, view and share high-quality video content quickly and easily across multiple devices.