(RTTNews) - China-based wireless value-added services provider Hurray! Holding Co. Ltd. (HRAY: News ) Friday said it has agreed to buy online video portal Ku6 Holding Limited in an all stock deal. With the completion of the merger, Ku6 will retain its brand name and become a wholly-owned subsidiary of Hurray!.

Under the agreement terms, all of the outstanding capital shares of China-based Ku6 will be sold to Hurray!, and all of the outstanding employee stock options of Ku6 will be canceled, in exchange for an aggregate of 723.68 million ordinary shares of Hurray!, of which 44.44 million will be represented by American Depositary Shares of Hurray!, each representing 100 ordinary shares of Hurray!.

Hurray! stated that certain executive officers and selling shareholders of Ku6 intend to enter into lock-up agreements for a period of 180 days to two years after closing with respect to Hurray! shares that they will receive in the merger. The transaction is anticipated to close in the first quarter of 2010.
In the second quarter, Hurray! had reported an attributable net loss of US$ 11.0 million or US$ 0.50 per ADS as compared with a net income of US$ 1.6 million or US$ 0.07 per ADS in the same quarter last year. Hurray!'s total revenues for the quarter were US$ 9.8 million, down 22.9% from US$ 12.8 million in the second quarter of prior year.

In Wednesday's regular trading session, HRAY closed trading at $5.11 per share on the Nasdaq. In the past 52-week period, the shares have been trading in a range of $0.93 to $7.16.

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by RTT Staff Writer

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