Beijing-based film and TV producer Enlight Media is set to merge with NASDAQ-listed Chinese ring tone provider Hurray! Holding, to form a new company called Hurray Enlight Media Group.

The merger is a share exchange deal, valued at around $160m, after which Enlight Media will hold 42% of the initial shares of the new company.

Enlight Media CEO Wang Changtian will become chairman and CEO of the new company. Sean Wang, president and CFO of Hurray!, will be co-president and CFO. Enlight's vice president Li Xiaoping will be co-president.

The merger is seen as a combination of Hurray's mobile entertainment and music business and Enlight's strength in film and TV production and distribution. Wang aims to make the group the largest private entertainment content provider in China.

'We believe that China has room for a huge domestic media giant such as Time Warner or News Corporation, and we intend to fill that position,' said Wang at a press conference to announce the deal.

Established in 1998 as a producer of TV entertainment news, Enlight Media is known for its popular TV programme China Entertainment Report (now titled Entertainment News Live) among its eight entertainment programmes. It is now one of the largest private TV producers and distributors, producing 20 TV dramas and four hours of daily variety shows.

In 2007, the company began to get involved in film investment and distribution and has co-distributed Confession Of Pain, Flash Point and Triangle with Polybona Film Distribution.

Hurray! Holding owns distribution channels such as Huayi Brothers Music and Freeland Digital Music, New Run Entertainment and Secular Bird.

Hurray Enlight is also the third Chinese private entertainment group to be listed, after Asian Union Film and Media and Chengtian Entertainment Group. In 2005, Asian Union Film and Media gained a backdoor listing in Hong Kong after merging with Hong Kong 's Universal Holdings. Earlier this month Chengtian bought a 25% stake in Hong Kong-listed film giant Golden Harvest to become the biggest single shareholder of the company.

Apart from entertainment content production, it is understood that Hurray Enlight Media Group will develop TV channels, film distribution and new media.