Alibaba Group Holding Ltd. is planning to acquire a stake of over 50% in Chinese video sharing platform AcFun through the e-commerce giant's video-sharing arm Youku Tudou and YF Capital, the private equity firm founded by Alibaba founder Jack Ma, Caijing reported.
After a new round of financing and assets reorganization, Ma's YF Capital will own over 20% of AcFun's stake, while YF and Youku Tudou together will own more than 50% of AcFun, making Alibaba the controlling shareholder of the video site, according to the report. YF Capital reportedly valued AcFun at about 1 billion yuan.
In November, Chinese regulators asked AcFun to take corrective measures after finding that it did not have a license to stream videos online, and speculation surfaced that AcFun shut down the platform after users were unable to log into the website or app for three days.
As of Dec. 20, US$1 was equivalent to 6.58 Chinese yuan.