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Alibaba Offers to Buy China Video Site Youku in $3.6B Deal

FILE - Chairman and chief executive of Alibaba Group Jack Ma reacts during a session of "Future-Proofing the Internet Economy" at the World Economic Forum (WEF) in China's port city Dalian, September 9, 2015.

E-commerce giant Alibaba says it is offering to buy up the rest of Chinese video streaming site Youku Tudou, in its latest move to branch out beyond its core business of online shopping.

Alibaba Group Holdings said Friday that it already owns 18.3 percent of Youku Toudou's U.S.-listed shares and has proposed to buy the remaining stock for $26.60 in cash per share.

The offer price is 30.2 percent higher than Youku's last closing price on the New York Stock Exchange.

After subtracting Youku's approximately $1 billion in cash on hand, Alibaba is paying about $3.6 billion to buy the remaining stake.

Alibaba has been expanding into films and the deal gives it a platform to broadcast its content to China's growing ranks of middle-class consumers.