Broadbander eyes livedoor

Usen, Fuji mulling moves

Usen Corp., the Tokyo-based broadband service provider that owns film distributor Gaga Communications, is mulling a marriage with beleaguered Internet startup Livedoor, company officials revealed on Wednesday.

Usen issued the comment to the press in response to Japanese media reports that it was talking with Fuji TV about buying the web’s 12.75% Livedoor share. Company refused to elaborate on what form the tie-up could take.

Also Wednesday, Fuji TV chairman Hisashi Hieda told reporters the web is weighing the sale of its Livedoor shares. He did not name any potential buyers, but he did say Fuji would prefer a purchaser whose business “is related to Livedoor’s.”

Among other options, Fuji is considering suing its erstwhile partner for stock losses. Livedoor’s share price was ¥329 ($2.79) when Fuji was forced to buy a ¥44 billion ($373 million) stake in the company in May to end Livedoor’s hostile attempt to take over a radio broadcaster in the Fuji group. The stock price at the close of trading Wednesday was ¥85 (72¢). If Fuji holds onto the shares until the end of the March 31 financial year, it will book a huge loss.

The Tokyo Stock Exchange has decided to delist Livedoor shares effective April 14. Move followed the handing down of fresh indictments to former president Takafumi Horie and four other Livedoor execs for falsifying financial information to boost the company’s share price.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety

Loading