[00-8-09] CyberWorks To Take Control Of Japanese Software Company
By Adam Creed, Newsbytes.
TOKYO, JAPAN,
09 Aug 2000, 11:42 PM CST
****CyberWorks To Take Control Of Japanese Software Company 08/09/00 TOKYO, JAPAN, 2000 AUG 9 (NB) -- By Adam Creed, Newsbytes. Not content with taking over Hong Kong's largest telephone company, Asian Internet giant Pacific Century CyberWorks is turning its attention to Japan with the planned acquisition of a major entertainment software company there.
Pacific Century CyberWorks Ltd (PCCW) is the Hong Kong-listed technology group backed by Richard Li's Pacific Century Group.
This month PCCW is finalizing the US$35.9 billion takeover of Cable & Wireless HKT, and will make it a wholly-owned indirect subsidiary company.
The company still has cash to invest however, and plans to pump some $250 million into listed Japanese video game software producer Jaleco Ltd. This investment, if the takeover bid is successful, will entitle PCCW to assimilate Jaleco by renaming it Pacific Century CyberWorks Japan.
It will be PCCW's launching pad into the large Japanese market. Jaleco's existing Sega and PlayStation software development will expand to broadband Internet content - PCCW's focus in Asia.
The Hong Kong company doesn't plan to go it alone - it has gathered a group of well-heeled Japanese partners ready to throw their weight behind the new venture.
Japan's giant advertising agency Dentsu, financial services company Orix, entertainment ticketing and lifestyle publisher PIA have linked with PCCW to invest in the new company.
Key to the future of the venture is PCCW's NOW (Network of the World) Web TV service. The converged broadband TV and high-speed Web service is rolling out in Hong Kong and China, with Japan the next target. The former Jaleco will develop broadband content, or programming, and a Sony unit has also agreed to join this production effort.
PCCW Japan will also develop Japanese software and content for Internet distribution around Asia and the rest of the world, and set up a data center for application service provision (ASP).
An agreement signed today will allow PCCW to acquire a majority share of 81 percent in Jaleco. In a statement, the company said the acquisition will involve a take-over bid and a two-stage third-party allotment.
"This acquisition deepens our commitment to Japan and provides a solid anchor for our North Asia operations," said PCCW Chairman and CEO Richard Li. "Acquiring Jaleco is a significant milestone in our global strategy."
Reported By Newsbytes.com, newsbytes.com .
(20000809/WIRES ASIA, PC, ONLINE, BUSINESS/PCCW/PHOTO)
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