China’s e-commerce group Alibaba and leading online video source Youku Tudou announced a strategic investment and partnership agreement on April 28, 2014.

Alibaba and private equity firm Yunfeng Capital will buy an 18.5 percent stake in Youku Tudou for $1.22 billion. Alibaba will hold 16.5 percent while the latter’s shareholding ratio will be two percent.

"The deal will help Youku Tudou build a cultural platform that integrates online and offline entertainment,” said Victor Koo, chairman and CEO of Youku Tudou.

Jonathan Lu Zhaoxi, CEO of Alibaba, will join Youku Tudou's board of directors.