Ku 6 Media Co (NASDAQ:KUTV)

BEIJING, May 24, 2012 /PRNewswire-Asia/ -- Ku6 Media Co., Ltd. ("Ku6 Media" or the "Company", Nasdaq: KUTV), a leading internet video company in China, focusing on User Generated Content (UGC), today announced that it has entered into an agreement with famous Chinese SNS website Kaixin001.com ("Kaixin001").

Pursuant to the agreement, Ku6 Media, as the video hosting provider, is assisting Kaixin001 to add a brand new video sharing function by supplying technology support to all video uploading activities on Kaixin001. Users on Kaixin001 will enjoy a one-stop service that enables them to upload, store and share their videos without leaving the website. Meanwhile, users on Ku6 Media's platform can share the videos with their friends on Kaixin001 by only one click.

Mr. Jeff Shi, Chief Executive Officer of Ku6 Media, commented, "We are very pleased with the cooperation with Kaixin001. We believe our cooperation can help enlarging Ku6's user base as well as richening our users' online experience. We also hope our videos and service can bring users on Kaixin001 more fulfilling experiences and more joy."

Mr. Binghao Cheng, Chief Executive Officer of Kaixin001, added, "We are very excited about partnering up with Ku6 Media. Our video sharing function is an important feature we have launched recently. We believe it will enhance our user experience by bringing them abundant video content and also by providing a great platform for them to share their original videos."

BEIJING, March 30, 2012 /PRNewswire-Asia/ -- Ku6 Media Co., Ltd. ("Ku6 Media" or the "Company", Nasdaq: KUTV), is a leading internet video company in China, focusing on User Generated Content (UGC), today announced that it has entered into an agreement with Star China to cooperate with its well-known international music television channel Channel[V].

Pursuant to the agreement, Channel[V] will lanuch its official online channel on Ku6 Media's platform for its current and upcoming music entertainment programs in mainland China. Ku6 Media will be responsible for all non-content operations including platform operation, online promotion and IT support etc.

Mr. Jeff Shi, Chief Executive Officer of Ku6 Media, commented, "We are very pleased with the cooperation with Channel[V]. We believe this will strengthen our position in the online music entertainment area. It will also enable both parties to play to their strengths and bring users easier access to richer entertainment content, which is part of Ku6 Media's long-term mission."

Mr. Ming Tian, Chief Executive Officer of Star China, added, "We are very excited about partnering up with Ku6 Media. Their popular online video portal is a great complement to our TV channels. Through the cooperation with Ku6 Media, we will be able to deliver our excellent entertainment content to a wider group of audiences. We look forward to the great result from our cooperation."

Fourth Quarter Results 2011

 Gross profit was $0.19 million in the fourth quarter of 2011, as compared to a gross loss of $1.25 million in the third quarter of 2011 and a gross loss of $5.70 million in the fourth quarter of 2010.

 Operating expenses were $4.38 million in the fourth quarter of 2011, representing a decrease of 61.2% from$11.28 million in the third quarter of 2011 and a decrease of 55.2% from $9.77 million in the fourth quarter of 2010.

 Operating loss was $4.19 million in the fourth quarter of 2011, representing a decrease of 66.6% from $12.53 million in the third quarter of 2011 and a decrease of 72.9% from $15.46 million in the fourth quarter of 2010. Net loss was $3.94 million in the fourth quarter of 2011, representing a decrease of 69.6% from the loss of$12.98 million in the third quarter of 2011 and a decrease of 74.5% from the loss of $15.45 million in the fourth quarter of 2010. Net loss attributable to Ku6 Media per basic and diluted ADS was $0.08 in the fourth quarter of 2011, compared to $0.26 in the third quarter of 2011 and $0.44 in the fourth quarter of 2010. Weighted average ADSs used to calculate diluted net loss per ADS were 50.2 million in the fourth quarter of 2011, 50.2 million in the third quarter of 2011 and 34.8 million in the fourth quarter of 2010. As of December 31, 2011, the Company had $26.75 million in cash and cash equivalents, compared to $41.63 million as of September 30, 2011. Accounts receivable decreased by $1.40 million, Accounts payable decreased by $8.64 million, and short term loans decreased by $1.97 million.

Mr. Jeff Shi, Chief Executive Officer of Ku6 Media, commented, "Through the successful strategic transition starting in the second quarter of 2011, Ku6 Media has firmly established itself as the leader in UGC in China, with nearly 200, 000 video clips being uploaded on daily basis in February of 2012. Our Value Creating User (VCU) program, started in August 2011, has now recruited more than 5, 000 contracted VCUs, who enjoy financial rewards according to video views their uploads attract. According to Ku6 Media's internal tracking data, monthly unique visitors (UV) have reached 220 million in February 2012. With continuous efforts in cost and expense reduction, in the fourth quarter of 2011 we have achieved our first quarterly gross profit and cut our quarterly net loss to its lowest level since Ku6 Media became public in 2010. We are confident that these improvements will build a solid foundation for steady and sustainable growth."

Third Quarter 2011 Results

Second Quarter 2011 Results

BEIJING, August 2, 2011 /PRNewswire-Asia/ -- Ku6 Media Co., Ltd., (Nasdaq: KUTV) ("Ku6" or the "Company"), a leading Internet television company in China, today announces the resignation of acting CEO Haifa Zhu and appointment of CEO Yu (Jeff) Shi, both effective on August 1, 2011. Mr. Zhu will remain a Board member of Ku6.

Bruno Wu, Chairman of the Board of Ku6, comments, "Haifa has provided valuable leadership and service to the Company. The Board would like to thank Haifa for his contributions to Ku6 and wish him well. We are also pleased to have Mr. Shi joining the Ku6 management team as CEO. We believe that Jeff's leadership will ensure a smooth transition while Ku6's continues to build ourselves into a company more focused on users' needs and driven by technology and product development."

As a professional consultant, Jeff Shi worked at Arthur Andersen and KPMG Consulting for over 6 years, then joined Juneyao Group as Deputy General Manager of strategy planning and capital markets. In 2009 Mr. Shi joined Shanda Interactive Entertainment ("Shanda") as Senior Director of Strategy and Integration. Mr. Shi holds a bachelor's degree from Shanghai Jiaotong University.

Red Flag:

Internal controls were effective in 2007, but have not been effective since then.

On April 1, 2011, we entered into agreements with Shanda Media Group Limited, or Shanda Media, a wholly owned subsidiary of Shanda Interactive, pursusnt to which we agreed to issue to Shanda Media 1,538,461,538 ordinary shares for an aggregate purchase price of $50,000,000 (or $0.0325 per share) and $50,000,000 aggregate principal amount of senior convertible bond. The bond will mature in three years after issuance and will bear an interest of 3% per annum. The issuance of the ordinary shares and the convertible bond has been approved by our independent directors and shareholders. Shanda Media has committed to make the investment and we anticipate to close these transactions in the early part of the third quarter of 2011. As a result, we believe we will have sufficient liquidity to finance our 2011 anticipated operations and capital expenditure requirements, as well as achieve projected cash collections from customers and contain expenses and cash used in operations.

We believe that our current cash and cash equivalents together with the new committed investment by Shanda Interactive in the aggregate amount of $100 million will be sufficient to meet our anticipated cash needs, including for working capital, capital expenditures and various contractual obligations, for at least the next 12 months. We may require additional cash resources due to the cost of running our online video business or due to changed business conditions or other future developments, including any investments or acquisitions we may decide to pursue.

From time to time, we evaluate possible investments, acquisitions or divestments and may, if a suitable opportunity arises, make an investment or acquisition or conduct a divestment, which may have a material effect upon our liquidity and capital resources.

First Quarter Results:

• Total revenues from continuing operations were $6.6 million, up 178.5% from $2.4 million in the first quarter of 2010, and slight down 3.0% from $6.8 million in the fourth quarter of 2010.
• Net loss from continuing operations was $10.9 million, an increase of 9.9% from a loss of $9.9 million in the first quarter of 2010, and a decrease of 29.6% from a loss of $15.4 million in the fourth quarter of 2010.
• Net loss attributable to Ku6 Media per basic and diluted ADS was $0.31 in the first quarter of 2011, compared to $0.44 in the fourth quarter of 2010 and $0.39 in the first quarter of 2010. Weighted average ADS used to calculate diluted net loss per ADS was 34.8 million ADS in the first quarter of 2011, 34.8 million ADS in the fourth quarter of 2010 and 27.9 million ADS in the first quarter of 2010.

Mr. Haifa Zhu, Acting Chief Executive Officer of Ku6 Media, commented, "Ku6 Media has continued to make progress in the first quarter of 2011. Facing the future opportunities and challenges, management will actively take various measures to solidify our leading positions in technology and content, to further improve user experience, to optimize cost structure, and to improve operation efficiency. After the completions of the cash infusion, the merger with Pipi and the restructuring of our sales department, we believe that we will be in a better competitive position in Chinese online video market, and will continuously improve our financial performance."

BEIJING, April 21, 2011 /PRNewswire-Asia/ -- Ku6 Media Co., Ltd., (Nasdaq: KUTV) ("Ku6" or the "Company"), a leading Internet television company in China, announced today that Ku6 and the shareholders of Hangzhou Soushi Networking Co., Ltd. ("Pipi"), a leading P2P based internet video platform in China, have agreed to the sale of Pipi to Ku6, in an all stock transaction under which all of the equity interests in Pipi will be sold to Ku6 in exchange for an aggregate of 2,212,114,257 Ku6 ordinary shares. After the completion of the merger, Pipi will become a wholly-owned subsidiary of Ku6.

Completion of the share purchase will be subject to the condition that the shareholders of Ku6 approve the issuance of ordinary shares of Ku6 to the shareholders of Pipi at a special shareholders meeting to be convened in the near future. The transaction is expected to close in the second quarter of 2011.

Shanghai Shanda Networking Co., Ltd. ("Shanda Networking"), a wholly-owned subsidiary of Shanda Interactive Entertainment Limited (which is a major shareholder of Ku6), is one of the early investors of Pipi and holds 32% of the equity interests in Pipi. Shanda Networking will sell its equity interests to Ku6 in this transaction. A special committee, comprised of three independent directors of Ku6, represented Ku6 in the negotiations of the transaction. Based upon and subject to the qualifications, limitations and assumptions set forth in its written opinion dated April 20, 2011, the same date as KPMG Advisory (China) Limited has rendered its oral opinion, to the effect that as of that date the consideration to be paid by Ku6 was fair to Ku6 from a financial point of view. The special committee approved the proposed transaction on April 20, 2011.

All selling shareholders of Pipi intend to enter into lock-up agreements for a period of 181 days to two years after closing with respect to the Ku6 shares that they will receive in the merger.

Commenting on this merger, Mr. Haifa Zhu, Acting Chief Executive Officer of Ku6, said, "We are very pleased to announce this merger with Pipi, which we believe is one of the best P2P based internet video platforms in China. After merger with Pipi, we believe we will become the first internet television company with large-scale operations in both browser and video player in China. We believe that we will have more opportunities to achieve synergies going forward and we will continue to expand our market share, our users number and our advertising clients number in the fast-growing online video market in China."

Mr. Lianghai Yang, Chief Executive Officer of Pipi, said, "We are excited to join forces with Ku6. In March 2011, Pipi Player has reached peaked concurrent users number of about 5.3 million. I am confident that the combined company will be better positioned to compete effectively in the continually expanding online video advertising market in China."

BEIJING, April 1, 2011 /PRNewswire-Asia/ -- Ku6 Media Co., Ltd., announced today that it agreed to issue to Shanda Interactive Entertainment Limited (NasdaqGS: SNDA) ("Shanda") ordinary shares and convertible bonds in an aggregate amount of US$100,000,000.  

Ku6 agreed to issue to Shanda US$50,000,000 of ordinary shares of Ku6 at a per share price ofUS$0.0325 (or US$3.25 per ADS), representing a 1.0% discount to the average closing price for the past 15 trading days, andUS$50,000,000 aggregate principal amount of 3% senior convertible notes at face value.  The bonds will mature in three years after issuance and will bear an interest of 3% per annum, payable semi-annually. The bonds will be convertible into ordinary shares of Ku6 at a price of US$0.03925 per ordinary share (or US$3.925 per ADS), representing a 19.6% premium to the average closing price for the past 15 trading days.  The conversion rights will start after 6 months following the closing date.  The transaction is subject to the approval by the shareholders of Ku6. Closing is expected in the second quarter of 2011. The Company intends to use the net proceeds from the sale of the convertible bonds and ordinary shares for business expansion, working capital and other general corporate purposes.