BEIJING and SHANGHAI, June 1
/PRNewswire-Asia/ -- Shanda Interactive Entertainment Limited
(Shanda) (Nasdaq: SNDA), a leading interactive entertainment media
company in China and Hurray!
Holding Co., Ltd. (Hurray!) (Nasdaq: HRAY), a leader in online
video portal operations, artist development, music production,
wireless music distribution, and other wireless value-added
services in China, today announced
that Shanda and Hurray! have entered into a definitive agreement
under which Hurray! will acquire an online audio business of Shanda
in exchange for 415,384,615 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 US$36,944,267 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 US$11 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050314/CNM005LOGO
)
A committee, comprised of three independent directors of
Hurray!, represented Hurray! in the negotiations of the transaction
agreement and received fairness opinion on the proposed transaction
from its independent financial advisor, KPMG Advisory (China) Limited. After extended negotiations
and careful consideration, the special committee approved the
proposed transaction.
Completion of the transaction will be subject to various
conditions, including the approval of the issuance of the ordinary
shares of Hurray! to Shanda at Hurray!'s shareholders' meeting. The
transaction is expected to be completed in the third quarter of
2010.
About Shanda Interactive Entertainment Limited
Shanda Interactive Entertainment Limited (Nasdaq: SNDA)
("Shanda") is a leading interactive entertainment media company in
China, offering a broad array of
online entertainment content on an integrated service platform to a
large and diverse user base. Shanda offers its high quality
entertainment content through its subsidiaries and affiliates,
including Shanda Games, Shanda
Literature, Hurray!, and various other online community and
business units. The broad variety of content ranges from massively
multi-player online role-playing games (MMORPGs) and advanced
casual games, to chess and board games, e-sports, literature, film,
television, mobile ringtones and music, etc. By providing a
centralized platform through which Shanda can deliver its own
content as well as third-party content, Shanda allows its users to
interact with thousands of other users while enjoying some of the
best entertainment content available in China today. Shanda: "Interaction enriches
your life". For more information about Shanda, please visit
http://www.snda.com .
About Hurray! Holding Co., Ltd.
Hurray! is a leader in video, music, and wireless services. In
video, through its ku6.com subsidiary, Hurray! is one of the
leaders in online video portal operations in China. In music, Hurray! provides artist
development, music production, and recorded music distribution in
China through its record labels
Freeland Music, New Run
Entertainment, Secular Bird, and Seed Music. Through its Fly Songs
subsidiary, Hurray! organizes concerts and other musical events in
China. The company provides online
distribution of music and music-related products that include
ringtones, ringbacktones, and truetones to mobile users in
China. These tone products are
distributed through wireless value-added service platforms over
mobile networks and the internet. In wireless services, Hurray!
provides a wide range of other wireless value-added services to
mobile users in China, including
games, pictures and animation, community, and other media and
entertainment services.
Forward-looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward- looking statements by
terminology such as "will," "expects," "believes" and similar
statements, which include without limitation the possibility that
Hurray! may be unable to obtain shareholder approval required for
the issuance of Hurray! ordinary shares and statements regarding
Hurray!'s and Shanda's respective abilities to (i) achieve
synergies with their respective acquisitions and (ii) capture
opportunities in the internet and media market in China. The accuracy of these statements may be
impacted by a number of business risks and uncertainties that could
cause actual results to differ materially from those projected or
anticipated, including: the risk that this or any future
transaction will not create the operational and financial results
that the management and boards of directors of Hurray! and Shanda
expect, including in particular the possibility that this
transaction may not be accretive to earnings in any future period
or that Hurray! or Shanda will not continue to be able to attract
users in China; the risk that
Hurray! or Shanda will not be able to effectively manage or utilize
their respective acquired assets; the risk that the popularity of
video or audio-related online services or other interactive media
will not continue to grow or that it may decrease; the risk that
this and any future transaction could divert management's attention
from Hurray!'s or Shanda's operations, which could adversely affect
results of operations; and the risks outlined in our filings with
the Securities and Exchange Commission, including our registration
statements on Form F-1. We do not undertake any obligation to
update this forward-looking information, except as required under
applicable law.
For more information, please contact:
For Shanda:
Dahlia Wei, IR Associate Director
Elyse Liao, IR Senior Manager
Tel: +86-21-5050-4740 in Shanghai
Email: IR@snda.com
For Hurray!:
Matthew Zhao
Investor Relations Officer
Tel: +86-10-5758-6818 in Beijing
Email: ir@hurray.com.cn
SOURCE Hurray! Holding Co., Ltd.