Chinese Internet video company Ku6.com announced that their board of directors has received an initial non-binding privatization offer from controlling shareholder Shanda.

According to Ku6, Shanda offered to buy Ku6 for USD0.0108 per ordinary share, which equals USD1.08 per ADS.

This proposal values Ku6 at about USD51.5 million, which represents a premium of 54% compared with its ADS closing price on January 29, 2016. Meanwhile, it is a premium of 42% compared with its average closing price over the previous 30 trading days and a premium of 52% compared with its average closing price over the previous 60 trading days.

By February 1, 2016, Shanda held about 69.9% in Ku6 and Shanda plans to realize this potential privatization transaction with existing cash in hand. At present, the board of Ku6 is evaluating this privatization proposal and is expected to set up a special committee to implement a detailed assessment.