Video Portals Combine Cash and End Rivalry

Tough competitors for Internet eyeballs Youku Inc. and Tudou Holdings suddenly declared an end to their heated rivalry March 12 by means of a share-swap merger.

Under the US$ 1.1 billion deal between the money-losing but tremendously popular video portals, Youku shareholders will receive 71.5 percent and Tudou shareholders will get a 28.5 percent stake in a new company called Youku Tudou.