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Thursday January 26, 1:05 AMFuji TV eyes buying Livedoor(Kyodo) _ Fuji Television Network Inc. is considering acquiring Livedoor Co. after the Internet services firm announced its new management following the arrests of former executives, sources close to one of Japan's major TV broadcasters said Wednesday.The move might be seen as an attempt by Fuji TV to settle a score after being drawn into a business alliance with Livedoor, which some believe it was pressured into when the fast-growing Net firm obtained a leading stake in Nippon Broadcasting System Inc. in February last year in an attempt to exert some influence over Fuji TV. The radio broadcaster was then the biggest stakeholder in Fuji TV. Livedoor and Fuji TV reached a settlement in April in which they agreed to start talks on a business alliance over what they termed a fusion of the Internet and broadcasting. Fuji now holds 12.75 percent of the outstanding shares in Livedoor, the second largest stake after Livedoor founder Takafumi Horie, who was arrested Monday over alleged securities law violations. Under the accord reached last year, Fuji TV bought the Livedoor shares for 44 billion yen. However, falls in the company's share price due to massive sell orders triggered by prosecutors' investigation into the internet firm led the broadcaster to incur an unrealized loss of over 25 billion yen as of Wednesday, according to the sources. Fuji TV likely believes that an announcement that it intends to acquire Livedoor could improve its current situation, said the sources. Fuji TV Chairman Hisashi Hieda early hinted at the company's positive stance on a possible acquisition, saying he believes Livedoor "has stocks, cash and savings." He also praised the people chosen for its new management. Prosecutors arrested Horie and three others on Monday, suspecting the Livedoor group misled financial markets in 2004 by spreading false information over one of its subsidiary's acquisition deals and that the group also committed accounting fraud the same year. Horie resigned as Livedoor president on Tuesday and also gave up all executive posts on Wednesday, stepping down completely from the group's management. |
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