According to a statement issued by both companies, the break-up resulted from the discrepancy in the two companies' business strategies. The two agreed that the merger may not serve the best interests of each company, but in future they will continue cooperation by other means.
As a result of the announcement, the share price of Hurray! Holding dropped 9% on Thursday, down to $2.81.
Last November, Enlight Media and Hurray! said they would merge to form a new company named Hurray Enlight Media Group. Enlight Media planned to hold 42% of the initial shares of the new company. And in two years it planned to hold up to 65% of the company's shares. Wang Changtian, CEO of Enlight Media, was named chairman and CEO of the new company.
It is understood that the actual transaction of the merger did not take place after last November's merger announcement.
'The cease of the merger gives us more choices to plan the long-term strategy for the company,' Wang Changtian told local media.
Wang said Enlight's goal to combine media and entertainment business and to become China's most influential media entertainment group remains the same.
In future, Wang said Enlight may plan to enter the stock market by itself. Apart from Nasdaq, the choices also include the Hong Kong stock exchange and Shanghai A Share.
Enlight Pictures, the film business wing of Enlight Media, began its operation in film investment and distribution in 2007. It is the mainland China distributor of Johnnie To's romance drama Linger. Last year it co-distributed Confession Of Pain, Flash Point and Triangle with Polybona Film Distribution.