Hurray, a subsidiary of the Chinese media and game company Shanda Interactive Entertainment Limited, has announced that it will sell its music and wireless value-added businesses to the parent company.

Under the agreement between Hurray and Shanda, Hurray will acquire an online audio business owned by Shanda, while Shanda will gain about 415 million of additionally issued ordinary shares of Hurray.

At the same time, Shanda will acquire Hurray’s recorded music and wireless value-added businesses for about USD36.9 million in cash. The transacted value can be adjusted according to the cash balance of Hurray’s online audio business as of May 31, 2010.

Upon the completion of the transaction, the Chinese video website, which was previously acquired by the Nasdaq-listed Hurray, will become the main business of the company. This means, will become the first Chinese video website that is independently listed in the United States.

Hurray will change its name to and will acquire Shanghai Radio-arts Network Technology Company Ltd., an Internet radio station of Shanda. The new company will focus on the Internet video sector and will penetrate new user groups via Radio-arts.

However, the success of the transaction depends on many conditions, including whether the shareholders of Hurray agree to issue additional ordinary shares to Shanda. If everything goes smoothly, the transaction is expected to be completed in the third quarter of 2010.