Sources:Docomo-AOL Deal to Be Unveiled Wednesday
10:18 p.m. ET (218 GMT) September 26, 2000
TOKYO (Reuters) — Japan's NTT DoCoMo, a world leader in wireless technology, and U.S. Internet service provider America Online (AOL) will announce a tie-up on Wednesday after markets close at 3 p.m. (2 a.m. EDT), sources close to the deal said.
The companies will jointly develop and market mobile Internet services and technology, boosting their efforts to expand into the international arena.
Officials from both companies declined to comment, but according to individuals close to the deal, NTT DoCoMo, Japan's dominant mobile carrier, will take a 42.3 percent stake in AOL Japan, becoming the largest shareholder. The Japanese company will also invest $100 million cash in AOL Japan, which has about 440,000 dial-up subscribers.
The deal will help AOL in its efforts to expand its Internet presence abroad by giving it access to the 12 million subscribers to DoCoMo's highly successful "i-mode'' wireless Internet service.
AOL Japan's services, which include e-mail and its popular real-time instant messaging service, will be integrated with i-mode.
DoCoMo will also market AOL's service and distribute its software at its network of retail stores.
The deal with AOL, the largest fixed-line Internet provider whose merger with media giant Time Warner Inc. is expected to close this fall, will help DoCoMo gain an international presence as the companies jointly work to develop wireless Internet services in Japan and elsewhere.
AOL will reduce its stake in AOL Japan from 50 percent to 39.3 percent. Mitsui & Co Ltd. and publisher Nihon Keizai Shimbun will together hold a 17.4 percent stake. Currently, Mitsui owns 40 percent and Nihon Keizai holds 10 percent.
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