Hurray Sells Music, WVAS Businesses to Shanda
Shanda IR, 6/01/10
Chinese interactive entertainment media company Shanda Interactive (Nasdaq: SNDA) today announced a definitive agreement to purchase the music and WVAS businesses of its subsidiary Chinese wireless value-added service provider Hurray (Nasdaq: HRAY). Hurray will acquire an online audio business of Shanda in exchange for 415.38 mln newly issued ordinary shares of Hurray, and concurrently, Shanda will acquire Hurray's recorded music and wireless value-added services businesses in exchange for an aggregate of USD 36.94 mln in cash, subject to adjustment based on the May 31, 2010 cash balances of the businesses being transferred to Shanda. The net consideration to Hurray, for its businesses excluding payment for the cash balances in the businesses being transferred is estimated to be approximately USD 11 mln.
Editor's Note: Shanda also released a Chinese-language notice specifying that the deal is between Hurray and Shanda's Shanghai-based entity, Shanda Networking, not the Cayman Islands-incorporated and Nasdaq-listed entity Shanda Interactive. The online audio business acquired by Hurray, Shanghai-based Radio-Arts, specializes in audio content production for games, animation and advertising.
Keywords: Shanda Internet music wireless SNDA Hurray WVAS HRAY SP M&A
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