Youku-Tudou Merger Shows Sector in Trouble, Analyst Says

(Beijing) – The merger of China's two major video portals indicates the days of fast growth in the industry are gone, an analyst tells Caixin.

On March 12, Youku Inc. (NYSE:YOKU) and Tudou Holdings Ltd. (NASDAQ: TUDO) announced an all-stock deal expected to be worth more than US$ 1 billion.

A senior executive at a video website said most such sites in China will have to save cash this year to cope with increasing financing difficulty as capital lost interest in the sector.