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Shanda to Buy Hurray Majority Stake
Shanda Interactive Entertainment Ltd. (Nasdaq:SNDA) through a wholly-owned subsidiary will purchase a 51% stake in music production, artist development and wireless value-added services provider Hurray! Holding (Nasdaq:HRAY), at a price of $0.04 per ordinary share, or $4.00 per American Depositary Share, the two companies announced June 8.
The offer price represents an approximately 25% premium over Hurray's Nasdaq closing price on June 5, 2009 and a total transaction value of approximately $46.2 million, according to the announcements.
Previous reports suggested that Shanda may try to purchase up to 80% of Hurray shares, while others noted that Shanda may inject some of its online literature assets including Qidian.com, into Hurray for backdoor listing.
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