Simpson Thacher & Bartlett, Shearman & Sterling and Skadden, Arps, Slate, Meagher & Flom have scored lead advisory roles on Alibaba Group and Chinese private equity firm Yunfeng Capital’s agreement to buy a $1.22 billion stake in online video company Youku Tudou Inc.
Alibaba and Yunfeng Capital will jointly own a 18.5 percent stake in Youku Tudou, whose online video services resembles Google Inc’s YouTube.
Chinese private equity firm Yunfeng Capital was co-founded by Alibaba's executive chairman Jack Ma, and is raising up to $1 billion in its second fund, Reuters previously reported.
The investment is the third major media acquisition by Alibaba and its founder in less than two months, and brings the ecommerce company’s deal making spree to nearly $4.0 billion in the past six months.
Skadden’s Hong Kong-based partner Julie Gao is advising Youku Tudou on the transaction, with TransAsia Lawyers and Maples and Calder advising on PRC and Cayman Islands law, respectively.
A Simpson Thacher team led by Hong Kong partner Kathryn Sudol is representing Alibaba, while Fangda Partners and Walkers are providing PRC and Cayman Islands legal advice, respectively.
Shearman & Sterling is advising Yunfeng Capital on the deal, with Beijing-based partner Lee Edwards and counsel Yi Zhang leading the team.
An O’Melveny & Myers team headed by New York partner Paul Scrivano and Silicon Valley partner Steven Tonsfeldt is advising 1Verge Holdings, the largest shareholder in Youku Tudou.
Morgan Stanley is Alibaba’s financial advisor, while Goldman Sachs is advising Youku Tudou.
“Alibaba's investment will strengthen Youku Tudou as China's largest online video platform and further differentiate our services and user experience,” Victor Koo, chairman and chief executive officer of Youku Tudou said in a statement.
Alibaba is preparing for a U.S. initial public offering, which could raise more than $15 billion, Reuters previously reported.