China’s top 2 video websites to merge

China's top two video websites announced plans Monday to merge in hopes of creating the dominant competitor in a fast-growing industry that is drawing viewers from bland state television.

Youku Inc. and Tudou Holdings Ltd. said the new company, Youku Tudou Inc., will be created in a stock-for-stock transaction. They said it requires shareholder approval but is expected to be completed by the third quarter of this year.

China's dozens of privately owned video websites have nearly 400 million viewers and industry analysts say the field might represent the future of Chinese video watching and advertising. Read more...