Alibaba is recording another milestone in the construction of their entertainment empire. China’s top video service Youku Tudou Inc. announced Tuesday that it has completed privatization after a six-year run on NYSE, which means the site has become a wholly-owned subsidiary of Alibaba according to a 3.5 billion USD buyout deal the companies announced last year.

Victor Koo, the chairman of board and the CEO of Youku Tudou, said the company plans to return to the A share market within 3 years, and the relevant procedures have started. Koo disclosed that the group is still discussing the re-listing, they did not exclude the possibilities of back door listing, restructuring, or transferring to a shareholding company, Tech Sina reports.

It is not difficult to understand the reasons for Youku Tudou’s privatization. The company’s market cap is around 4.57 billion USD, much lower than the 109.1 billion RMB (16.86 billion USD) valuation of a comparable A-share video site Letv.com. Iqiyi, another video sites backed by Baidu, also plans to list on the A share market.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.