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3 Reasons Why the Market Doesn't Really Care About The Youku-TVB Deal

Shares of Youku Tudou  (NYSE: YOKU  ) rose over 3% last Wednesday after announcing an exclusive partnership with Hong Kong Television Broadcast. Despite the great terms Youku has received under this deal, the company's stock is still down 4% year to date. Why?

Even as the user-generated online video company moves towards original online programming that has helped Netflix shares and Google's YouTube, Youku Tudou still faces an increasingly competitive market. Fool contributor Kevin Chen tells us why investors need to watch out for Baidu's  (NASDAQ: BIDU  ) iQiyi, Sohu  (NASDAQ: SOHU  ) TV, and Youku's merger last year with Tudou.

If Youku Tudou still seems like a gamble at this point, then you might want to turn to one of the best buys in tech today: Baidu. In our brand-new premium report, The Motley Fool breaks down the dominant Chinese search provider's strengths and weaknesses, and why Baidu will be able to capitalize on its growth opportunities for some time to come. Just click here to access it now.


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Kevin Chen
TMFKang

Kevin Chen covers the tech sector in China. With degrees in history and economics, he scours government sources, magazines, blogs, and earnings reports before making any investment decision. You can follow him at @TMFKang or on Google+.

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7/1/2015 4:04 PM
YOKU $23.90 Down -0.63 -2.57%
Youku.com Inc. CAPS Rating: *
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Baidu CAPS Rating: ****
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Netflix CAPS Rating: **
SOHU $57.71 Down -1.37 -2.32%
Sohu.com CAPS Rating: **

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