Hurray! Holding Co., Ltd. (HRAY) announced that Hurray! and the shareholders of Ku6 Holding Limited have agreed to the sale of Ku6 to Hurray! in an all stock transaction under which all of the outstanding capital shares of Ku6 will be sold to Hurray! and all of the outstanding employee stock options of Ku6 will be cancelled, in exchange for an aggregate of 723.68 million Hurray! ordinary shares, of which 44.44 million will be represented by American Depositary Shares of Hurray!, each representing 100 ordinary shares of Hurray!.
After the completion of the merger, Ku6 will retain its brand name and become a wholly-owned subsidiary of Hurray!. The Board of Directors of Hurray! has unanimously recommended this transaction. The transaction is expected to close in the first quarter of 2010.
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 the Hurray! shares that they will receive in the merger.
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