March 8, 2012
Jupiter Telecommunications Co., Ltd.
Acquisition of ASMIK ACE ENTERTAINMENT, INC.
Jupiter Telecommunications Co., Ltd. (J:COM; Chiyoda-ku, Tokyo; President & CEO: Shuichi Mori) announced today that the Company's board of directors has approved the share acquisition of ASMIK ACE ENTERTAINMENT, INC. (Asmik Ace; Minato-ku, Tokyo; President: Masao Teshima), making Asmik Ace a consolidated affiliate of J:COM.
1. Reason of the Share Acquisition
In the “Direction of Medium-term Business Plan” presented last July, J:COM set increase in Media Business revenue as one of its objectives, supported through 4 pillars of growth strategy: 1. original content development, 2. bolstering channel operation, 3. strengthening of content distribution business, and 4. improving advertising business.
Based on such strategy, J:COM has implemented various measures in revamping its programming and improving its brand image to bolster its channel operation business. Examples include rebranding of “Women's Channel♪LaLa TV”, the merger of Discovery Japan and Animal Planet Japan, and addition of two more J SPORTS channels on BS platform on March 1, 2012, effectively making J SPORTS the largest broadcaster in terms of number of channels on BS platform. In addition, GOLF NETWORK will include new contents acquired from the GOLF CHANNEL starting April 1, 2012.
The acquisition of Asmik Ace matches above mentioned “original contents development” strategy, which is intended to broaden existing business domain through enhanced original contents development capabilities as well as acquisition of exclusive distribution rights to various contents. Asmik Ace is known for production of movies such as “Ooku” and “Bushi no Kakeibo”, and distribution of foreign movies such as “Transporter” and “Sayonara Itsuka”. It also handles secondary use of movies, such as sale of DVDs and sub-licensing to TV stations and to foreign distributors. Asmik Ace's core strength is its ability to integrate all aspects of movie production and ensuing sales, from planning to production, distribution, and secondary use all in-house.
By acquiring the above planning and production capabilities of Asmik Ace, J:COM intends to enhance its original content development capabilities, and expand its business domain through supporting movie distribution business and content production of Asmik Ace, while proactively seeking synergy with existing Media and CATV Businesses.
2. Outline of ASMIK ACE ENTERTAINMENT, INC.
|Company Name||ASMIK ACE ENTERTAINMENT, INC.|
|Address||6-1-24 Roppongi, Minato-ku, Tokyo|
|Representative||Masao Teshima, President|
|Capital||976 million yen|
|Shareholders (note 1)||Sumitomo Corporation (96.6%) , others (3.4%)|
|Recent Performance||Fiscal Term Ended March 2011 (in million yen)|
(Note 1) Sumitomo Corporation plans to purchase shares from minority shareholders to maximize its share control (maximum: 100%) prior to J:COM's acquisition of Asmik Ace shares.
|February 29, 2012||Closure of the share transfer agreement|
|March 30, 2012||Completion of acquisition process|
4. Impact on the performance
With this share acquisition, Asmik Ace will become J:COM's consolidated affiliate. The impact on this term's consolidated performance is currently examined.
About Jupiter Telecommunications Co.,Ltd.
Established in 1995, Jupiter Telecommunications Co., Ltd.(J:COM) is Japan's largest multiple system and multiple channel operator.
In system operation, J:COM provides cable television, high speed Internet access and telephony services to customers through 16 consolidated subsidiaries at the local level serving 3.63 million subscribing households in the Sapporo, Sendai, Kanto, Kansai, and Kyushu regions. The number of serviceable households or “homes passed” in J:COM franchise areas is 13.64 million. In channel operation, J:COM invests in and operates 17 thematic channels which are provided to CATV, satellite and telecom operators. Jupiter Telecommunications is a public company, trading on the Osaka Securities Exchange's JASDAQ market under code No. 4817. For more information (available in English), visit J:COM's website at http://www.jcom.co.jp/english.html
- * The above household figures are as of January 31, 2012.