UPDATE 1-Shanda to buy Hurray’s recorded music, wireless units

* Shanda to buy Hurray’s business for $36.9 mln

* Shanda to sell online audio business to Hurray

June 1 (BestGrowthStock) – Chinese Internet firm Shanda Interactive
Entertainment Ltd (SNDA.O: ) entered into an asset sale agreement
with Hurray Holding Co Ltd (HRAY.O: ) to buy its recorded music
and wireless value-added services business.

Shanda will buy the business for $36.9 million in cash, the
companies said in a statement.

As part of the transaction, Hurray will purchase Shanda’s
online audio business in exchange for 415.4 million newly
issued ordinary shares of the Chinese mobile content firm.

Hurray, which provides ringtones over mobile phone networks
and the Internet, will get about $11 million after excluding
payment for the cash balances in the businesses being
transferred to Shanda.

The companies expect the transaction to close in the third
quarter.

Shares of Shanda Interactive, which spun off its online
game unit last year, rose as much as 4 percent to $42.80, while
American Depository Receipts of Hurray rose 7 percent to $3.48
Tuesday on Nasdaq.

Growth Stocks

(Reporting by Manasi Phadke in Bangalore; Editing by Prem
Udayabhanu)

UPDATE 1-Shanda to buy Hurray’s recorded music, wireless units