Focus on Consolidation Deals in China

After yesterday's news that China's Youku (YOKU) and Tudou (TUDO) would merge, many of the other Chinese Internet names got a boost. The thinking seems to be: If Tudou can get bought, why not another smaller Chinese company?

But let's take a step back and look at what happened in the merger between the two online video companies. Both Tudou and Youku have been losing money for some time, spending enormous amounts on acquiring new content and paying for bandwidth costs. Each had raised so much capital and spent it that they had few other competitors in the space. Even though Baidu (BIDU) has an offering and the other larger Chinese portals, such as Sohu (SOHU), have video sites as well, these two pure-play online video sites have a clear market-share lead....385 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.