Cool 6 Shanda signs a merger agreement to privatize at a price of US$1.08

Ku6 Media announced today that it has signed a final merger agreement with Shanda Investment and Ku6 Acquisition Co., Ltd. Shanda Investment is the parent company of Ku6 Media, and Ku6 Acquisition Co., Ltd. is a wholly-owned subsidiary of Shanda Investment.

Ku6 Media (Nasdaq: KUTV) today announced that it has signed a final merger agreement with Shanda Investment Holdings Limited and Ku6 Acquisition Company Limited. Shanda Investment is the parent company of Ku6 Media, and Ku6 Acquisition Co., Ltd. is a wholly-owned subsidiary of Shanda Investment.

According to reports, according to the agreement, Shanda Investment will acquire Ku6 Media at a price of US$0.0108 per common share (equivalent to US$1.08 per ADS). One ADS(American Depositary Receipt) is equivalent to 100 common shares. The entire transaction is completed in cash.

Compared with the closing price of Ku6 Media ADS on January 29, 2016, Shanda Investment's bid premium is 54%. On February 1, Cool6 Media announced that it had received the privatization agreement. Compared with the average closing price of the 30 trading days before February 1, 2016, the price offered by Shanda Investment is 42% higher; compared with the average closing price of the previous 60 trading days, it is 52%.

As of the date of announcement of the privatization agreement, Shanda Investment owns 69.9% of the issued shares of Ku6 Media. It is reported that Shanda plans to use its cash to fund the transaction. Currently, the board of directors of Ku6 Media has approved the transaction. Both parties expect the transaction to be completed in the second half of 2016. After the transaction is completed, Ku6 will become a privately held company and its shares will be delisted from the Nasdaq Global Market in the United States.

It is worth noting that before this capital operation, Ku6 had already experienced acquisition, backdoor listing, sale and repurchase by Shanda. It is understood that Ku6, established in 2006, was one of the first video websites in China. Three years later, it was acquired by Shanda and launched on NASDAQ in July 2010, becoming the world's first video website to be listed on NASDAQ. The stock price once surged to US$8/share, but it did not improve much after falling back.

Editor: vian