Sohu IT, 3/04/08
According to a reliable source, the merger between Enlight Media and Hurray (Nasdaq: HRAY) has failed after Hurray found Enlight to have falsely reported income and performance figures - by a factor of ten. Hurray was also disappointed by Enlight's family-style management and execution, which it felt was not adequate to develop the two firms. Hurray therefore opted to continue independently.
The source added that while the merger agreement stipulated share settlement and delivery between the two companies was to have been completed by the end of January 2008, neither party had completed these. Hurray staff has also confirmed that Enlight Media hasn't initiated any takeover or restructuring actions and that neither side has formed a new board of directors.
In addition, as of February 11, 2008, Hurray's earliest venture capital investor, Granite Global Ventures (GGV), surpassed Hurray CEO Sean Wang (Wang Qindai) as the company's major shareholder after purchasing an 11.86% stake on the open market at the end of 2007. GGV investment partner Fu Jixun expressed that the increased backing of Hurray is a part of the firm's business strategy, but that more information could not be provided.
According to the above-mentioned source, official announcement of the merger's failure will be made around the time that Hurray's 2007 Q4 and annual financial reports are scheduled to be released, March 6th, New York time.