Beijing-based company Hurray! Holding has revealed its plans to buy 30% of independent record label New Run Entertainment, also based in the Chinese capital.

Beijing-based company Hurray! Holding has revealed its plans to buy 30% of independent record label New Run Entertainment, also based in the Chinese capital.

Hurray! is involved in wireless music distribution, artist development and music production, while New Run Entertainment boasts a roster of popular male vocalists such as Pang Long, Nanhe Beidou , Chang Hai, Da Mai and Han Dong.

Hurray! will pay $2.25 million for a 30% stake in New Run Entertainment, which until now has been owned by private investors. Hurray! expects the transaction to close before Dec. 31, subject to regulatory authorities' approval and other legal requirements.

Commented Hurray! chairman/CEO Qindai Wang in a Nov. 9 statement: "This further enhances our market leadership in music content and production capabilities, and takes us one step closer toward our goal of becoming a leading digital entertainment company in China."

On Aug. 10, in a lawsuit brought against Hurray! by Beijing-based digital music distribution company R2G, the Haidian People's Court of Beijing found Hurray liable for the illegal use of ringtone applications for 15 songs by Taiwanese male vocalist Jay Chou in violation of Chinese copyright law.

Analysts see Hurray!'s purchase of a stake in New Run as part of an ongoing trend in which operators of illegal online music-distribution services are attempting to go legitimate.

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