NTT DOCOMO to Turn Tower Records Japan into Subsidiary
OREANDA-NEWS. June 13, 2012. NTT DOCOMO, INC. announced today that it will acquire additional shares in Tower Records Japan Inc. to turn the company into a subsidiary, expanding on a business alliance and capital tie-up formed in 2005.
By establishing Tower Records Japan as a subsidiary, NTT DOCOMO expects to capitalize on the envisioned growth of e-commerce triggered by the proliferation of smartphones and tablets. Value-added services will be offered to customers of both DOCOMO and Tower Records Japan by integrating DOCOMO’s customer base of more than 60 million subscribers and extensive experience with mobile portals, such as dmenu™ and i-mode™, and Tower Records Japan’s experience, proven performance and all-round know-how in the retail music and entertainment field.
(1) Purpose of acquiring additional shares
As announced in DOCOMO’s 2015 medium-term vision, “Shaping a Smart Life,” DOCOMO aims to become an integrated services company centered on mobility. The company is driving innovation by converging with various industries and services through collaboration with partners, especially in fields that offer the greatest potential for synergy with DOCOMO’s mobile businesses.
Tower Records Japan, a large-scale retailer of CDs and DVDs operating 89 stores nationwide, has created a strong brand among diverse music fans and is well respected by the music recording industry based on its proven performance. DOCOMO intends to create increased synergy between Tower Records Japan and mobile devices including smartphones, aiming to strengthen its new subsidiary’s online sales of CDs/DVDs and other e-commerce business, in addition to in-store sales. In particular, DOCOMO will focus on value-added services that leverage synergies between mobility and Tower Records Japan stores, both online and retail.
(2) Summary of additional share acquisition
Acquisition procedure: Acquisition from existing stockholders
Completion date: By mid July 2012 (planned, following necessary legal procedures with related authorities)
Capital contribution ratio after additional acquisition: 50.3% (currently 42.1%).