China's two largest online video firms, Youku and Tudou, have agreed to merge in a bid to cut costs and boost their market share, BBC reported.

Youku is to acquire rival Tudou via a stock swap deal valued at $1bn. The merger will create the biggest online video firm in China, the world's largest internet market.

According to analysts, competition between the two firms to buy rights to video content and to attract advertisers to their respective websites, have caused both large losses in recent months.

They believe that the merger will not only reduce licensing costs but also give the new unit, which is expected to have a market share of more than 35%, more leverage in negotiating with advertisers.

A joint operation may result in savings from between $50m to $60m over the next 18 months.

(China.org.cn, CNTV March 14, 2012)

据英国广播公司报道，中国在线视频业两大巨头——优酷和土豆，日前签署协议宣布合并，以降低运营成本，扩大市场份额。

优酷将用换股方式，以10亿美金股价兼并土豆，成为中国最大的在线视频企业。当下中国互联网市场广阔，居全球之首。

分析人士指出，两企业之间竞争激烈，涉及向内容商购买版权、拉拢广告客户等，近几个月来，由此引发的亏损数额巨大。

此番他们认为，合并能降低版权成本并成立新实体，有望占领35%的市场份额，与广告商合作将更有说服力。

未来18个月，本次合并可节余5000—6000万美金。