Shanda to buy majority stake in Hurray Holding

Chinese online gaming company Shanda Interactive Entertainment Inc is buying a 51 percent stake in wireless value-added service company Hurray Holding for $46.2 million, in an effort to establish a digital entertainment conglomerate.

Shanda said in a statement yesterday that it plans to acquire a controlling stake in the bleeding NASDAQ-listed Chinese ring tone provider.

"We respect the work done by Hurray's board and management and their efforts in defining the strategies and direction and believe that Shanda's user base, resources and platform will facilitate the continued execution of these strategies," said Shanda Chairman Chen Tianqiao in a statement.