YouTube, you have been warned!

The top 2 online video companies in China are locking horns in a move that is surely going to challenge YouTube's domination of the market in the coming years. Youku.com is taking over Tudou, both companies have been on the US stock exchange recently and have received a lot of publicity. "This creates China's biggest video site, but it doesn't create a YouTube - they still have less than 50 per cent market share," said Bill Bishop, an independent analyst based in Beijing. News of this caused shares of both companies to go up and people see this as a move to challenge the dominance of YouTube in the long run. With the extra cash and more financial capabilities, in addition to the huge and active internet population in Asia which is growing by the day and also ready to spend cash online, there is reason to worry for YouTube to be a bit concerned too. Once the deal is completed, the combined entity will be named Youku Tudou, and headed by Youku Chairman and CEO Victor Koo. Tudou's CEO Gary Wang will join the new entity's board of directors.

Source: http://www.scmp.com

Image: LuMaxArt