Fuji Television Network Inc, Japan's biggest broadcaster, agreed to pay Internet portal Livedoor Co about 147.4 billion yen (US$1.4 billion) to end a two-month hostile takeover bid for a Fuji TV radio affiliate.

The Tokyo-based network will acquire Livedoor's 50 per cent stake in Nippon Broadcasting System Inc by September 1. Fuji TV will also buy new shares in Livedoor, giving it a 12.75 per cent stake, the two companies said yesterday.

Livedoor, owned by 32-year-old Takafumi Horie, began a hostile bid for Nippon Broadcasting in February in a quest to form a company spanning the Internet and broadcast media.

Horie's assault forced Fuji TV to make concessions to shareholders in a country where there has not been a successful hostile takeover in five years.

"Horie gained fame and popularity, which led Livedoor to get more hits" on its websites, said Yoshio Shima, a partner at Ottoman Capital, a Tokyo-based hedge fund. "For Fuji TV's part, they could have controlled Nippon Broadcasting at a cheaper cost if not for Livedoor."

Fuji TV will pay 67 billion yen for Livedoor Partners Co, a Livedoor unit holding 32.4 per cent of Nippon Broadcasting, and spend about 36.4 billion yen for Livedoor's remaining stake in the Tokyo-based company.

The 6,300 yen price per Nippon Broadcasting share matches Horie's average payment for the stock.

The TV network will also pay 44 billion yen to buy 133.74 million new shares in Tokyo-based Livedoor at Friday's closing share price of 329 yen.

Fuji Television President Koichi Murakami said one possible area of co-operation with Livedoor is television programming for broadcast on the Internet.

"We'd like to make the most of Livedoor's Internet expertise and experience," he said at an evening press conference.

The companies will set up a team to discuss collaboration on the Internet, TV and radio, Murakami said. The group will include officials from both companies and meet once or twice a week.

Livedoor shares rose by 6.4 per cent to 350 yen in Tokyo. Nippon Broadcasting shares, currently 36.5 per cent owned by Fuji TV, fell by 1.2 per cent to 5,880 yen, and will be delisted.

Fuji TV's shares fell by 3.5 per cent to 222,000 yen. (US$1=108.38 yen)

(China Daily 04/19/2005 page12)