Youku Tudou Inc. Stock Pops on Disney News

By Markets Fool.com

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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What:Shares ofYouku Tudou were up 9.7% as of 10:30 a.m. Tuesday after the company announced it has partnered with Disney to form a new "Marvel online movie marketing partnership."

So what:Specifically, Youku Tudou will be the exclusive online video marketing platform in China for Disney's Marvel collection of movies and TV series, driving awareness for the brand via trailers, online ticketing, live events, and -- without offering additional details -- "original programming dedicated to silver screen movies."

Youku Tudou points out that online marketing efforts were a significant contributor to boosting box office revenue in China forMarvel's Avengers: Age of Ultron, Guardians of the Galaxy, and Captain America: The Winter Soldier. For example, Youku Tudou notesWinter Soldier alone collected almost 800 million Chinese renminbiin the country, a massive improvement over the 80 million RMB achieved byCaptain America:The First Avenger in 2011. To be fair, it also helps that Cap received enormous exposure given his role the following summer in the global blockbusterMarvel's The Avengers, but the big online push Youku Tudou cites undoubtedly played a role.

Now what:Youku Tudou CEO Victor Koo elaborated, "These partnerships, like the one withDisney, are multifold and giveYouku Tudouthe opportunity to use its strengths to further its business model and drive future revenue streams through high-quality content, innovative marketing efforts, and merchandising channels."

With a captive audience of 500 million unique monthly users, it's no surprise Disney chose Youku Tudou for this partnership. And though specific financial terms weren't disclosed, Youku Tudou would be crazy not to seize the opportunity with Disney to exclusively promote and develop a world-leading brand like Marvel in China. All things considered, that's why I can't blame the market for bidding up shares of Youku Tudou today.

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The article Youku Tudou Inc. Stock Pops on Disney News originally appeared on Fool.com.

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