Now that Alibaba almost owns China's top online video site, what does this mean for investors and company management at the acquired business?

Announced this week right before the big e-commerce event of Singles' Day, Chinese e-commerce group Alibaba and Internet video group Youku Tudou jointly announced that the two parties have reached an agreement, under which Alibaba will acquire Youku-Tudou in cash.

On the completion of the transaction, the shareholders of Youku Tudou, other than the current investment entity controlled by Alibaba, will have the right to receive USD27.6 per American Depositary Share in cash.

As the result of the recommendation of an independent special committee of the Youku Tudou board, Youku Tudou's board of directors unanimously approved the transaction and recommends that Youku Tudou's shareholders vote to authorize the transaction as well.

Gu Yongqiang, chairman and chief executive officer of Youku Tudou, said that they believe this combination with Alibaba will maximize value for Youku Tudou shareholders and significantly benefit their customers, users, and team. They are eager to work with Alibaba to develop their multi-screen entertainment and media ecosystem. They are confident that they will strengthen their market position and further accelerate their growth with the integration of their advertising and consumer businesses with Alibaba's platform and Alipay services. With Alibaba's support, Youku Tudou will be able to enhance their position as a leading multi-screen entertainment and media platform in China.

This transaction is expected to close in the first quarter of 2016. However, it is still subject to customary closing conditions.

Following the completion of the transaction, Gu will remain as chairman and CEO of Youku Tudou; moreover, Youku Tudou's ADS will no longer be listed on the New York Stock Exchange.