Takafumi Horie

The purchase could spark a takeover battle with Fuji TV.

It didn't take long for maverick online entrepreneur Takafumi Horie to get his company's name back in the headlines after losing a bid to become owner of a new Japanese professional baseball team last November.

Horie's Livedoor Co. announced Tuesday that it had acquired a 35-percent stake in radio broadcaster Nippon Broadcasting System Inc., ostensibly to give the Internet service provider the power to integrate its Web-based services with radio and TV broadcasting services.

Horie told a news conference on Tuesday afternoon that he expects to increase cooperation with the Fujisankei Communications Group, which includes Nippon Broadcasting and Fuji Television Network Inc.

The move appears to pit Livedoor in yet another showdown, this time against Fuji TV, which is in the midst of a takeover bid for Nippon Broadcasting.

Fuji TV said in January that it wanted to reverse ``distorted'' cross-shareholdings with the radio company that enable investors who hold a controlling stake in the smaller Nippon Broadcasting to influence managerial decisions at the larger TV firm.

Fuji TV wants to raise its stake in Nippon Broadcasting, which holds a leading 22.5-percent share in the TV broadcaster, to over 50 percent from 12.4 percent to make it a subsidiary.

Fuji TV is listed on the First Section of the Tokyo Stock Exchange, while Nippon Broadcasting is listed on the Second Section.

Horie said he proposed a business alliance with the Fujisankei group and that he is considering acquiring more shares in the radio broadcaster.

He added that the bulk of the 80 billion yen it procured on Tuesday through issuances of corporate bonds was spent on the purchase.

While there is some speculation that the Livedoor president may have his sights set on another prize, namely the Yokohama BayStars or Yakult Swallows baseball clubs, which the Fujisankei group holds major shares in, Horie said that was not the case.

``It was only by chance (that we obtained a stake in a group with interests in baseball clubs),'' he said.

Livedoor's overall share in Nippon Broadcasting rose to 35 percent through group firm Livedoor Partners' purchase of a 29.6-percent stake.

Sources at Livedoor said the move is not a short-term investment aimed at making a quick buck.

With a combined 35 percent, the Livedoor group can veto management proposals at Nippon Broadcasting shareholders meetings.

Livedoor officials did not say from whom they purchased the 29.6-percent share.

Fuji TV says its attempt to take over Nippon Broadcasting will come to a halt on Feb. 21. It is not immediately known how many shares the company has so far acquired.

In response to reports of Livedoor's acquisition, Nippon Broadcasting's share price soared, hitting the daily limit of 6,990 yen, 1,000-yen higher than Monday's closing price. The issue ended Tuesday trading at 6,800 yen, up 810 yen from the previous closing.

Market watchers said the sharp increase was attributed to prevailing speculation that Fuji TV may raise its purchase price of 5,950 yen offered in its takeover bid.

Livedoor's share price closed at 455 yen, up 5 yen from Monday's closing, after climbing by 47 yen to 497 yen. Fuji TV shares closed Tuesday's trading at 235,000 yen, up 6,000 yen from the previous day.(IHT/Asahi: February 9,2005)