Chinese Internet stocks are on watch Friday after Alibaba (NYSE: BABA) offered to acquire Youku Tudou (NASDAQ: YOKU) for $26/ADS per share or a 27% premium to Thursday's close. Youku Tudou is considered 'China's YouTube.'

Other stocks to watch:

• Baidu (Nasdaq: BIDU)
• Sina (Nasdaq: SINA)
• SouFun Holdings (NYSE: SFUN)
• Qihoo (NYSE: QIHU)
• Phoenix New Media (NYSE: FENG)
• YY Inc. (Nasdaq: YY)
• Vipshop (NYSE: VIPS).
• Sohu.com Inc. (Nasdaq: SOHU)
• NetEase, Inc. (Nasdaq: NTES)
• Ctrip.com (Nasdaq: CTRP)
• Dangdang (NYSE: DANG)
• Qunar (Nasdaq: QUNR)
• Renren Inc. (NYSE: RENN)