Online Firm and Broadcaster in Share Sale Standoff

16 October 2006

TOKYO: Japan's leading online shopping mall operator Rakuten and the object of its alliance affections, TV network Tokyo Broadcasting System, have made little progress in their tense relationship since last year's takeover battle [WARC News: 05-Dec-05].

Rakuten, which amassed a 19.09% stake in TBS, is now pondering shares that have slipped in value in the same way as their own stock has suffered following the Livedoor scandal [WARC News: 23-Jan-06].

The companies are discussing more than twenty joint projects, such as production of movies and collaboration in online shopping.

But TBS has been demanding Rakuten sells the shares as a precondition for cooperation. The online giant is understandably reluctant to lose ¥15 billion ($125m; €100m; £67m) on any sale.

Data sourced from Asahi Shimbun Online; additional content by WARC staff