Chief at Alibaba video site Youku steps down amid corruption probe

The president of Youku, Alibaba aba Group Holding’s video-streaming ing service, has stepped down and d is believed to be talking to Chinese nese authorities as part of a potential ential corruption case, the company y said on Tuesday.

The abrupt departure comes amid a wider reshuffle of Alibaba executives as the company shores up its leadership following the announcement by chairman Jack Ma that he will retire next year. r.

Yang Weidong, right, who has been at Youku for roughly ghly five years, joined the firm before fore it was fully acquired by Alibaba ba in 2015. He previously worked at Chinese computer maker Lenovo vo Group.

“( Yang) is understood od to be assisting Mainland authorities horities with an investigation into o an alleged case of seeking economic onomic benefits,” said a spokeswoman woman for Alibaba’s Digital Media and Entertainment business.

The company declined eclined to give details on Yang’s connection onnection to the case, to say when he left the company, or which authorities uthorities might be talking to him. m. Yang could not immediatediately be reached for or comment.

The Central l Commission for Discipline Inspection n (CCDI), Chi- na’s corrup- tion watch- dog, was not t immediately available to comment nt after hours urs on Tuesday. ay.

Fan Luyuyuan, the current chief ecutive ive chairman an of

exex - and a nd film fifififififilm unit Alibaba Pictures, has taken over Yang’s role, the com company said.

Alibaba has been investing heav heavily in its digital media and entertainment business amid fierce competition from competitors including Baidu Inc. service iQiyi. The unit, which oversees Youku as well as the Alibaba’s film and ticketing businesses, has pledged to invest $7.2 billion in the three years leading up to 2020.

Yang’s abrupt replacement also comes amid a wider crackdown on corruption and tax evasion by authorities, targeting China’s film industry.

The cleanup was triggered after A-list actor Fan Bingbing, who has appeared in “X-Men” and “Iron Man’ film franchises, was accused of tax evasion and subsequently disappeared from public life for several weeks earlier this year.

Fan has since been ordered to pay 884 million yuan ($129 million) in overdue taxes and fines, state media said in October. Fan publicly accepted the punishment and apologized to her fans in a social

media posting.

Yang is understood to be assisting Mainland authorities with a probe into an alleged case of seeking economic benefits. In his entertaining blog and in his book of the same name, FT columnist Tim Harford explores the big economic themes of our time, such as the widening gap between the rich and poor and why it is so difficult to get a foot on the property ladder. Using his everyday experiences to tackle complex financial subjects makes this a very easy and accessible read.