Hurray (HRAY) has signed a definitive agreement to acquire a 30% equity interest in Beijing New Run Entertainment Company, an independent Chinese record label.
Hurray will invest a total of US$2.25 million in cash for a 30% equity interest of New Run Entertainment. The consideration payable by Hurray and the respective ownership interests of the parties in New Run Entertainment are subject to adjustment based on 12 months financial performance of New Run Entertainment following the close of the acquisition.
New Run specializes in music production and distribution for its portfolio of artists which include some of the most popular singers in China, such as Pang Long, Nanhe Beidou, Chang Hai, Da Mai and Han Dong.
QD Wang, Chairman and Chief Executive Officer of Hurray, said, "We are very pleased to announce this strategic
partnership with New Run Entertainment, a premium record label in China with strong track record. This further enhances our market leadership in music content and production capabilities, and takes us one step closer toward our goal of becoming a leading digital entertainment house in China."