Alibaba (BABA) Sweetens Deal to Acquire Youku Tudou (YOKU)

Shares of Youku Tudou Inc. (NYSE: YOKU) are expected to tick higher on a boosted takeover offer from e-commerce giant Alibaba (NYSE: BABA).

Ahead of the opening bell on Friday, Alibaba announced an all-cash takeover offer of $27.60 per Youku Tudou American Depositary Share (ADS). The amount compares with a prior bid of $26.60 per ADS.

With the prior offer, Alibaba said it owned 18.3 percent of Youku Tudou outstanding capital stock, though it wasn't made clear what Alibaba's holding in Youku Tudou was with today's announcement.

Traders will also be keeping an eye on Sina Corp (Nasdaq: SINA) today. The company has been mentioned as a potential takeover target for Alibaba, though recent market chatter suggests that the deal won't happen anytime soon.

Shares of Youku Tudou are indicated over 8 percent higher Friday, while Alibaba and Sina are both currently flat.

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