Brean Murray Carret Maintains Hold on Youku.com

According to a research report published earlier today, Brean Murray Carret maintains its Hold rating on Youku Inc. (NYSE: YOKU) as currently there is limited visibility of profitability.

“YOKU has entered into a definitive agreement to acquire TUDO in a 100% stock transaction. The deal evaluates TUDO at $39.89/ADS, a 159% premium. YOKU and TUDO shareholders will own ~71.5% and 28.5% of the combined entity post the deal. We view the acquisition as a strategic positive for YOKU as it will help the company to futher strengthen its leadership position in online video sector and become a dominant player in the fast growing online advertising market,” Brean Murray Carret commented in the report.

Youku.com closed yesterday at $31.85.