On March 12th, two major Chinese video websites—Youku and Tudou—announced their merger with 100% equity swap of the two companies. After the merger, the company was named Youku Toudou Co., Ltd.. The shareholders of Youku and the holders of its American Depository Receipts (ADRs) will have 71.5% of the new company’s shares, while the shareholders of Toudou and the holders of its ADRs will have 28.5% of the new company’s shares. The whole process of merger is estimated to be finished in Q3, 2012. According to some analysts, the reason for the merger of the two companies is actually the copyright problem. After the merger, though the two companies still have separate management and sales teams, they are able to share their resources with copyrights, which is beneficial for both sides.