Best Prospect: Hurray, Shanda Acquisition Deal Fails
Sina Tech, 5/22/09
Jacky Tung, head of the Best Prospect Overseas consortium that offered to purchase a 51% stake in Chinese wireless value-added services provider and music production firm Hurray (Nasdaq: HRAY), recently said he believes Hurray has failed to reach a deal with Chinese online game developer and operator Shanda (Nasdaq: SNDA). Tung added that he expects some of Hurray's board members will be forced to resign for the failure. Best Prospect Overseas is currently waiting for the final outcome to be announced before deciding its next strategy. Hurray spokesperson Du Hua stated that he knew nothing of the issue.
Responding to a Hurray shareholder who claimed that senior Hurray management collectively held over 60% of the company's equity and that Best Prospect Overseas had no hope for an acquisition, Tung replied that he believes Hurray's key executives hold no more than 25% of Hurray's shares.
Yesterday, Liu Xiaoxi, co-founder and former CFO of Hurray, said that Best Prospect Overseas could not force Hurray to sell its stake and the consortium stood no chance in its acquisition attempt.
Keywords: M&A Liu Xiaoxi Best Prospect HRAY Hurray Jacky Tung Shanda SNDA strategy wireless investment WVAS
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