NASDAQ-listed Chinese online video company Ku6 is on course to be bought by Shanda Interactive Entertainment.
Ku6 announced that it has received a non-binding proposal from Shanda to take the company private at the price of $1.08 per American Depositary Share. That would value Ku6 at some $51.5 million.
As is customary practice Ku 6 warns that “there can be no assurance that any definitive offer will be made by the proposing buyer or any other person.” But as Shanda is already the company’s largest shareholder, with a majority 69.9% holding, the deal is certain to be waved through if it comes to a shareholder vote.
Ku6 Media, specializes in user generated video content and provides online video uploading and sharing services, video reports, information and entertainment in China.
Other consolidation in the Chinese video sector includes the ongoing transaction which sees Alibaba poised to acquire Youku Tudou for over $3 billion.