On Thursday, Shares of Alibaba Group Holding Limited (NYSE:BABA), surged 4.73% to $71.78.
Alibaba Group Holding Limited, declared that it made a non-binding proposal to the board of directors of Youku Tudou Inc. (YOKU) to acquire all outstanding shares of Youku, counting shares represented by American depositary shares (“ADSs,” each representing 18 ordinary shares of Youku), that it does not already own for US$26.60 per ADS in an all-cash transaction. The proposal is subject to satisfactory completion of due diligence by Alibaba and the negotiation of a mutually acceptable definitive merger agreement. In May 2014, Alibaba made an initial planned investment in Youku and owns 18.3% of the outstanding share capital of Youku based on Youku’s public filings.
Digital entertainment is core to Alibaba’s strategy of promoting consumption of virtual goods and services. The projected transaction would expand the existing partnership between Alibaba and Youku, and would combine Alibaba’s unparalleled data-driven platforms in e-commerce, media and advertising with Youku’s market-leading digital video franchise to significantly accelerate Youku’s growth. Youku’s large user base, especially in mobile, and its popular platforms with high user engagement would form one of the key pillars of Alibaba’s digital entertainment strategy. Under Alibaba’s proposal, Youku’s founder, Victor Koo, would continue to lead the business as chairman and chief executive officer.
Alibaba is making the proposal with the support of the founding shareholders of Youku, counting Victor Koo, Chengwei Capital and their associates.
Alibaba Group’s administration will hold a conference call to discuss the declaration at 8:00 p.m. Hong Kong Time (8:00 a.m. U.S. Eastern Time) on October 16, 2015.
Alibaba Group Holding Limited, through its auxiliaries, operates as an online and mobile commerce company in the People’s Republic of China and internationally. It operates Taobao Marketplace, an online shopping destination; Tmall, a third-party platform for brands and retailers; Juhuasuan, a group buying marketplace; Alibaba.com, an online wholesale marketplace; Alitrip, an online travel booking platform; 1688.com, an online wholesale marketplace; and AliExpress, a consumer marketplace.
On other hand, Target Corp. (NYSE:TGT) recently closed at market price of $75.13, down -1.40%, with a 1 year price target of $85.29. The company has a market cap of $47.21 billion. The forward P/E ratio is 14.60. The company faced unusual surge in volume as 10,114,100 shares exchanged hands Thursday, as compared to its average daily volume of 5.11M shares.
Analysts mean recommendation for the stock is 2.60.
Target Corporation operates as a general merchandise retailer in the United States and Canada. It offers household essentials, counting pharmacy, beauty, personal care, baby care, cleaning, and paper products; music, movies, books, computer software, sporting goods, and toys; electronics, such as video game hardware and software; and apparel for women, men, boys, girls, toddlers, infants, and newborns, in addition to intimate apparel, jewelry, accessories, and shoes.
