- Shanda Media, which owns 70.5% of Ku6 (KUTV +57.6%), is selling a 41% stake to Xu Xudong, the founder/controlling shareholder of Chinese social networking/messaging platform iSpeak.
- The purchase price will be "determined based on the lower of the market price of the Company’s ADSs during the seven consecutive business days immediately prior to the closing of the Transaction and the closing price of the Company’s ADSs on the closing date."
- Notably, Xu will be paying for the shares using a loan from Shanda that will be "secured by a pledge of all the Company’s shares" he owns. The deal is expected to close by April 30.