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KDDI to pay $4bn for Jupiter Telecom stake
26 January 2010
KDDI is to buy a 37.8% stake in fellow Japanese operator J:Com from the US cable group Liberty Global
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[Jupiter]
[Japan]
[J:Com]
[Liberty Global]
[NTT]
[NTT DoCoMo]
[John Malone]
Comment: KDDI has become a significant competitor in Japan to NTT, the incumbent, and its mobile operation, NTT DoCoMo. This move will strengthen its competitive position by giving it access to a new range of customers.
US-based cable operator Liberty Global is planning to offload its 37.8% stake in Japan’s Jupiter Telecommunications for $4 billion. The group, controlled by cable veteran John Malone, will sell its stake in the company to Japanese broadband and mobile operator KDDI.
The deal will help the Japanese company gain access to 3.3 million potential households for phone services and will lower its dependence on incumbent operator NTT for fibre networks. The sale will allow the cable company to focus on its operations in Europe, Latin America and Australia.
Jupiter — which operates under the J:Com brand — offers internet, cable TV and mobile phone services across Japan, while KDDI additionally provides satellite communications. Liberty Global has appointed JP Morgan to advise over the deal and the Japanese company is seeking the assistance of UBS. GTB
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