NEW YORK (TheStreet) -- Shares of Yoku Tudou (YOKU) are higher by 5.62% to $29.86 in late afternoon trading on Wednesday, as the Internet TV company joins other China-based companies as they get a boost from Qihoo 360 Technology's (QIHU) go private offer.
A consortium led by the software maker's CEO Hongyi Zhou, offered Qihoo $77 per ADS, or $9.01 billion, an offer which the company is currently evaluating.
A number of Chinese companies have gone private recently, or have received offers to go private as tech executives are betting on higher valuations in China, Reuters reports.
These companies are also going private in order to avoid legal issues when the country's government officially make illegal foreign shareholder control of firms in protected tech sectors, Reuters added.
So far today, 4.04 million shares of Youku Tudou have exchanged hands as compared to its average daily volume of 4.74 million shares.
Separately, TheStreet Ratings team rates YOUKU TUDOU INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOUKU TUDOU INC (YOKU) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."