Youku Climbs on Internet Video License for Tablets, Smartphones

Youku Inc. (YOKU) gained for the first time in three days after the owner of China’s most popular online video site received a license to offer government-authorized content on computers, tablets and smartphones.

American depositary receipts of Youku, which plans to acquire smaller competitor Tudou Holdings Ltd. (TUDO) in a stock deal valued at about $893 million, rose 1.9 percent to $22.47 at 12:40 p.m. in New York after rising as much as 4.4 percent in earlier trading. Tudou advanced 2 percent to $30.74.

China’s General Administration of Press and Publication granted Youku the license on March 28, the Beijing-based company said in a statement distributed by PRNewswire today.

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net

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