Alibaba considering video platform llternatives according Bloomberg, Alibaba Group is investigating several possibilities for its video entertainment assets as the Chinese technology giant moves further into the implementation phase of its plan to reform its organizational structure.
According to the people, the corporation is in the process of conducting a strategic evaluation of the video streaming sites Youku and Tudou. These persons asked not to be identified because the information is confidential.
Alibaba considering video platform alternatives, one of the potential courses of action that is being contemplated is to transfer the assets to Alibaba Pictures Group Ltd. in order to broaden the commercial focus of the Hong Kong-listed company.
Alibaba is planning a six-way restructure to try to stimulate development and establish a family of standalone leaders in sectors ranging from e-commerce and media to cloud and logistics. This study on video platform assets comes at the same time as the announcement. A startling shakeup of the company’s leadership was disclosed the previous month, with Daniel Zhang, who had served as chief for eight years, being replaced.
![[files] An employee walks past a logo of Alibaba (China) Technology Co. Ltd REUTERS/Carlos Barria](https://www.afriupdate.com/wp-content/uploads/2022/11/Alibaba-1062x598-1-120x86.jpg "Tanking Alibaba drags Hong Kong as markets rally fades 4")
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Youku has competition in China from both Tencent Holdings Ltd. and iQiyi, which is owned by Baidu Inc. The competition was formerly so fierce that the leading operators spent billions of dollars purchasing content and developing original programs.
They did this by following the tried-and-true strategy that Netflix Inc. has set in order to increase their market share and fight off competition from other newcomers. This strategy, however, resulted in the beginning of a price war that was unable to be maintained and put the players in the red.
As the company attempts to reverse years of losses, Chief Executive Officer Gong Yu stated in an interview in May that iQiyi has turned its focus to increasing subscriptions with more selective and high-quality content in order to increase revenue.
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According to the people, discussions are only getting started, and Alibaba could consider alternative options as well, such as a separate listing for the video platforms or even the possibility of not moving forward with any agreement at all. Requests for comments were not immediately responded to by representatives of Alibaba or Alibaba Pictures.
According to the information provided on its website, Alibaba Pictures is involved in the creation, promotion, and distribution of content. Additionally, it provides cinema ticketing administration and data services for the entertainment business. It is the driving force behind several of China’s most financially successful films, including Wolf Warrior 2, The Wandering Earth, and Dying to Survive.
Additionally, the corporation made an investment in the motion picture Green Book, which went on to win three Oscars in 2019, including those for best picture, best supporting actor, and best original screenplay.
In the past year, shares of Alibaba Pictures have dropped by approximately 45%, which has resulted in the firm being valued at approximately $1.5 billion.
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Youku and Tudou, which were once fierce competitors, combined in 2012 in an all-stock transaction with a value of approximately one billion dollars. Alibaba completed the acquisition of the US-listed Chinese video portal in 2016 for a total price of $5.1 billion. Despite the fact that it is the third-largest online long-form video platform in China in terms of monthly active users, Youku has been facing rising competition from short video applications such as Bytedance’s Douyin.
The losses that were incurred by Alibaba’s digital media and entertainment company were reduced during the first quarter as a direct result of Youku’s investments in content and production capability. The division’s pre-interest, taxes, depreciation, and amortization loss was around 1.1 billion yuan ($152 million) for the three months that ended on March 31, compared to a loss of over 2 billion yuan for the same period in 2022.
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