Shares in online video platform Youku Tudou were up 8.12 per cent to US$26.35 in mid-afternoon trading in New York on Friday after the company arrived at a takeover deal with e-commerce giant Alibaba Group Holding.

Alibaba will pay US$27.60 a share, valuing the company at US$4.4 billion. The price was a 35 per cent premium to Youku’s closing price on October 15. Shares in Alibaba, which already held a one-fifth stake in the company, initially gained on the news but was down 3.69 per cent at US$82.23 at 1.30pm. 

Chinese internet portal Qihoo 360 Technology shares hit US$61.56 in mid-afternoon trade, up 2.94 per cent.