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Ku6 Media Co Ltd (ADR) (NASDAQ:KUTV) has signed a merger deal with Shanda Investment Holdings Limited and subsidiary Ku6 Acquisition Company Limited. As part of the agreement, Shanda has acquired Ku6 Acquisition Company Limited for cash equivalent to $0.0108 per share or $1.08 per American Depositary Share.

This cost represent a 54% premium over the organization’s ADSs closing price on January 29, the last exchanging date quickly preceding the organization’s declaration on February 1 that it had gotten a proposition of going private. This meant a 42% premium over the average closing cost of its ADSs amid the 30 exchanging days before February 1 and a 52% premium over the ADSs closing price amid the 60 days of trade before February 1.

Merger Details

The company said that the merger was a major one for the company‚Äôs plans in 2016 and it was planning to capitalize on the same. At the merger time, the parent company valuably possessed around 69.9% of the organization’s shares, both outstanding and issued. The merger, which is anticipated to be finished in late 2016, is liable to standard conditions of closing. KUTV shares were up after the news of the merger surfaced and it will help it in going private soon.

Ku6 Media Co Ltd has seen a rise of 31.82% since August 27, 2015 and is trending upwards ever since. It has given an outperformed by 27.87% the S&P500. Ku6 Media Co., Ltd. works as an Internet video and new media organization and gives an extensive determination of exclusive and separated client created content. The company is strongly rated at the stock exchange.

Ku6 Media Co Ltd

It also deals in in-house created content and authorized substance on websites particularly in China. The organization also has an online portal ku6.com that gives online video transferring and sharing services, video reports, data, and entertainment options to the viewers.

Its online video content contains news, comedies, Channel V music recordings, recreations, and smaller scale motion pictures. The sub-channels involve amusement, sports, design, finance, innovation, technology, autos, education services and others and internet advertising services incorporate into sponsorship, in-video, display and different things.