Business, Telecom & Wireless

Best Prospect Begs For Hurray To Engage In Acquisition Talks

Best Prospect Overseas Limited's Jacky Tung has bedeviled Chinese wireless value-added services firm Hurray with another open letter that practically begs for more acquisition talks.

Addressing the open letter to Qindai Wang, chairman of Hurray, Tung responds today to Hurray's press release of May 14, in which the company says it is not interested in a deal with Best Prospect. Tung assails Wang in the letter and states, "You never discussed any of the issues raised in the May 14 press release with us. In fact, you ignored our good faith attempts to discuss our withdrawn offer with you. Had you been willing to engage in a meaningful discussion with us, all of your concerns would have been addressed."

Rumors in Chinese media have placed Chinese online game company Shanda in the middle of the controversy, as it as been alleged to already be working on a deal to acquire some or all of Hurray. Tung addresses this when he writes, "Have you, as reported in the local media, signed any unusually long exclusivity arrangements with other parties and rendered Hurray unmarketable for an unusually long period of time, and have you avoided disclosing this material information to your shareholders in violation of U.S. securities laws?" So far, Shanda said it has no comment on this acquisition rumor.

For the last quarter of 2008, Hurray's total revenues hit USD14.4 million, representing an increase of 6.7% quarter-over-quarter and a decrease of 9.2% year-over-year. Of that total, WVAS revenues were USD11.5 million, representing an increase of 3.8% quarter-over-quarter and an increase of 4.2% year-over-year. Recorded music revenues were USD3.0 million, representing an increase of 19.2% quarter-over-quarter and a decline of 39.3% year-over-year. Net loss was USD9.2 million. For the entire 2008 fiscal year, the news was not any better. Total revenues for the year were USD54.0 million, a decline of 10.9% as compared to USD60.5 million for 2007. WVAS revenues totaled USD42.7 million, a decline of 14.7 % as compared to USD50 million for 2007. However net loss for the entire year only hit USD12.0 million, compared to net loss of USD42.0 million for 2007.

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