Youku (NYSE: YOKU), a popular Chinese online television company, has been working to clean up its reputation and offer licensed content in an attempt to draw advertising dollars from foreign and domestic companies. The company has faced struggles with piracy lawsuits, government censorship, and the state-owned media’s web expansion. In the most recent quarter Youku posted a significant loss due to an increase in operating expenses, but the extra costs incurred to clean up their reputation might have been worth it. Revenue increased 96%, which was in line with the company’s growth estimate of 90% to 100%. For the third quarter, Youku is predicting revenue growth of 70% to 80%. In an effort to continue that growth, Youku agreed to acquire competitor Tudou Holdings (NASDAQ: TUDO) to create the largest Chinese online-video company by advertising revenue.