Rumor: Ku6 to Move Games, Music Operations to Beijing
DoNews, 12/19/11
A Shanghai employee of Shanda Interactive's (Nasdaq: SNDA) online video subsidiary Ku6 (Nasdaq: KUTV) recently revealed that Ku6 plans to move its games and music channel operations from Shanghai to Beijing. Ku6's Beijing headquarters and Shanghai office are coordinating the move, which is expected to be made before the end of December, after which all of Ku6's channel operations will be based in Beijing.
Beijing headquarters reportedly notified Shanghai employees that those who choose to relocate will retain their current position and pay rate, but their duties may be adjusted if necessary. Ku6 said it will assist employees in arranging accommodation in a specific area and provide a housing subsidy of approximately RMB 2,000, as well as revise employment contracts to include unemployment insurance and housing accumulation fund contributions in accordance with local Beijing rates. Employees who choose not to relocate to Beijing will be given one month's pay in compensation and be released from their employment contract.
Since the majority of employees at the company's Shanghai office are registered residents in the city and few are willing to accept the relocation offer, most plan to take the severance package, according to the source, who said that discussions between employees and the company remain amicable.
Ku6 has said that regardless of the number of Shanghai-based employees who relocate to Beijing, the company's games and music channels will continue normal operations.
Editor's Note: For more information on this topic, please see "Ku6 Lays Off 20% of Workforce," MD 5/18/11 and "Ku6 Promises No Additional Layoffs This Year," MD 5/20/11 issues.
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