BEIJING, May 12, 2009 (Xinhua News Agency) -- Shanda (SNDA.NASDAQ) is under intense negotiations with Hurray! Holding (HRAY.NASDAQ) on details over buying out the SP firm, according reports on tech.sina.com.cn Tuesday.

The report quoted sources as saying that Hurray, a domestic wireless value-added service provider (SP), had granted Shanda a month of private negotiations ending May 23.

Shanda has long been willing to explore SP business opportunities noted market analysts, adding that the online game operator had contacted Hurray over a possible merge two years ago. The president, however, refused the deal deeming Hurray's business of sour quality.

After 3G made its debut, many SP firms such as Kongzhong Corp. (NASDAQ:KONG) (KONG.NASDAQ) and Hurray, whose cash reserves go beyond market values, have evolved into blue chip companies.

Prior to Shanda, Joy Media Group Inc had been in touch with Hurray for nearly a half year, but Joy Media was given the cold shoulder as soon as intervened, says the report.So far, Shanda has declined to comment on the news.