J:COM to Purchase Bain's 50% Stake in Jupiter Shop ChannelBy
Separately, Sumitomo to Sell 5% of Shop Channel to KDDI
Share Purchase Price Not Disclosed, Reported to Be $830 Mln~
Under the agreement, Bain Capital will sell all its holdings in closely held Jupiter Shop Channel Co., J:COM said in a statement on Thursday in Tokyo. The purchase price wasn’t disclosed but the Nikkei reported earlier that the deal would be worth more than 100 billion yen ($830 million).
J:COM cited synergies between the two companies in explaining the rationale of the acquisition. Founded two decades ago by Sumitomo Corp. and billionaire John Malone’s media company that’s now known as Liberty Global Plc, closely held J:COM is now jointly owned by mobile operator KDDI Corp. and Sumitomo. Jupiter Shop Channel, jointly owned by Sumitomo and Bain, currently runs programs on J:COM.
Separately, KDDI agreed to buy a 5 percent stake in Jupiter Shop from Sumitomo.
J:COM approached Sumitomo around June about buying Jupiter Shop Channel shares, Sumitomo spokesman Kazuho Enaka said. Though Sumitomo had been considering taking the shopping channel public, the purchase made sense because both companies could find synergy by offering each other’s services to customers, Enaka said.
The Jupiter Shop’s channel can be viewed in 28.7 million homes in Japan and generated 136.5 billion yen revenue during its latest fiscal year, according to the statement.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.