News Release (Sumitomo Corp.)
Dec. 09, 2008
Sumitomo Corporation
Sumitomo Corporation Acquires All Outstanding Shares of Jupiter Shop Channel
Sumitomo Corporation (head office : Chuo-ku, Tokyo; President and CEO : Susumu Kato; "SC") announced today that, through subsidiaries including SC Media & Commerce Inc. ( "SMC"), it has acquired indirectly a 30% equity interest in Jupiter Shop Channel Co., Ltd. (head office : Chuo-ku, Tokyo; President and CEO : Atsushi Shinohara; "Shop") from a subsidiary of IAC (NASDAQ : IACI, head office : New York, USA) pursuant to the following conditions, and has come to hold 100% of the interests in Shop.
- Number of shares acquired: 26,400 ordinary shares (equivalent to 30% of all issued shares)
- Shareholding ratio of SC post acquisition: 100%
- Purchase Price: 46 billion yen
PURPOSE OF THE TRANSACTION
Since its incorporation in 1996, Shop has been the leading TV shopping business in Japan and has shown continuous growth and earned a top market share, taking advantage of its strengths: the first 24 hour live broadcasting business in Japan, procurement of unique and select products from throughout the world, and entertaining TV shows.
In September 2007, SC acquired indirectly through SMC a 35% equity interest in Shop from Liberty Global for the purpose of accelerating SC's multi-channel strategy in the retail business, which broadens sale and purchase channels to meet consumers' diversifying needs.
Through the purchase of this additional 30% interest, SC has gained full control over Shop and will be able to make further significant strides in running Shop's business more flexibly and efficiently under the multi-channel strategy. SC expects that sales through Shop's retail platform of various brand products owned by SC's portfolio companies will be enhanced.
SC will continue to offer new value to consumers in Japan, by leveraging its existing media and lifestyle business portfolio (fashion brands retailing, cable systems, mobile, E-commerce, etc.) and expects further dynamic growth in the media and retail sectors in Japan.
ABOUT SUMITOMO CORPORATION
SC is engaged in multifaceted business activities through its worldwide integrated network, selling a variety of domestic products and services, conducting import/export and trilateral business transactions, making domestic and international business investments, and participating in numerous other activities in various industrial sectors around the world.
The Media/Lifestyle Business Unit integrates a wide range of businesses in the media, networks and lifestyle/retail sectors. Its media infrastructure business is centered on Jupiter Telecommunications Co.,Ltd.(J:COM), a cable system and multi-channel television programming entity with the top market share in Japan, and is also involved in film-related businesses. In the network field, the Media/Lifestyle Business Unit's business activities center on IT solutions, E-commerce and other Internet-related businesses and mobile communications. In the lifestyle and retail fields, in addition to Shop, it is engaged in supermarkets and drugstores and has significant commitments in brand-related businesses, including Barneys Japan and Marc Jacobs Japan.
ABOUT HSN and IAC
IAC (Chairman & CEO : Barry Diller) operates more than 35 leading and diversified Internet businesses across 40 countries.
Inquiries
Corporate Communications Department, Sumitomo Corporation
TEL:+81-3-5166-3100 E-mail:press@sumitomocorp.co.jp
