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Shanda Interactive Proposes To Fully Acquire Ku6 Media

BEIJING/PRNewswire/ -- Ku6 Media Co., Ltd. ("Ku6 Media" or the "Company," NASDAQ: KUTV), a leading internet video company focused on User Generated Content in China, today announced that its Board of Directors (the "Board") has received a preliminary non-binding proposal letter dated February 1, 2016 (the "Proposal") from Shanda Interactive Entertainment Limited, the controlling shareholder of the Company (the "Proposing Buyer"). According to the Proposal, the Proposing Buyer proposed to acquire the Company in a "going private" transaction for US$0.0108 per ordinary share, or US$1.08 per American depositary shares (each representing 100 ordinary shares) (each an "ADS"). Based on the offer price, the Proposal values the Company at approximately US$51.5 million in fully enlarged equity value. According to the Proposal, the offer price represents a premium of 54% over the closing price of the Company's ADSs on January 29, 2016, a premium of 42% over the average closing price of its ADSs during the last 30 trading days and a premium of 52% over the average closing price of its ADSs during the last 60 trading days.

As of February 1, 2016, the Proposing Buyer beneficially owned, in the aggregate, approximately 69.9% of the Company's outstanding shares.

According to the Proposal, the proposed transaction is intended to be financed with cash at hand of the Proposing Buyer. The Proposing Buyer's proposal letter states that its proposal constitutes only a preliminary indication of its interest and is subject to negotiation and execution of definitive agreements relating to the proposed transaction. A copy of the proposal letter is attached hereto as Exhibit A.

The Board is reviewing and evaluating the Proposing Buyer's Proposal, and the Company expects that the Board will form a special committee consisting of independent directors to evaluate and, if appropriate, negotiate the Proposal and to consider other strategic options available to the Company.

The Company cautions its shareholders and others considering trading its securities that the Board has just received the proposal letter and has not made any decision with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made by the Proposing Buyer or any other person, that any definitive agreement will be executed relating to the proposed transaction, or that the proposed transaction or any other transaction will be approved or consummated.

According to the proposal letter, Davis Polk & Wardwell is acting as U.S. counsel to Shanda Interactive Entertainment Limited.

Source: Ku6 Media