Risks may sink Youku, Tudou deal


Youku's acquisition of its major rival, Tudou Holdings Ltd, will involve a great deal of risk and many uncertainties, according to a report filed by Youku to the US Securities and Exchange Commission.

These risks might even lead to the failure of the acquisition, the report stated.

A loss of goodwill between the companies and the huge purchasing costs involved in the transaction were both identified as potential hazards, according to the report.

Youku announced in March that it plans to buy its rival Tudou in an all-stock deal worth over $1 billion.


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