NTT DOCOMO to Turn Tower Records Japan into Subsidiary
Partnerships
TOKYO, JAPAN, June 11, 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%)
(3) Outline of Tower Records Japan Inc.
| Name |
Tower Records Japan Inc. |
| CEO |
Ikuo Minewaki |
| Head office |
Shibuya-ku, Tokyo, Japan |
| Capital |
6.5 billion yen |
| Established |
December 1981 |
| Employees |
2,160 (as of February 2012) |
| Business |
- Retail of music and video CDs/DVDs, books, magazines and other general merchandise at TOWER RECORDS, TOWERmini and TOWER RECORDS ONLINE.
- Import and wholesale of music and video software.
- Copyright management for musical compositions and other materials, and mastering musical compositions.
- Planning, manufacturing and retail of general merchandise and clothing.
- Planning, producing, managing and contracting events, advertisements, etc.
|
- About NTT DOCOMO
- NTT DOCOMO is a world-leading integrated-services company centered on mobility. The company serves over 60 million mobile customers in Japan via advanced wireless networks, including a nationwide 3G network and one of the world’s first commercial LTE networks. Leveraging its unique capabilities as a mobile operator, DOCOMO is a leading developer of cutting-edge technologies for NFC mobile payments, mobile GPS, mobile TV, intuitive mobile assistance, environmental monitoring, smart grids and much more. Overseas, the company provides technical and operational expertise to eight mobile operators and other partner companies. NTT DOCOMO is listed on the Tokyo (9437), London (NDCM) and New York (DCM) stock exchanges. Please visit www.nttdocomo.com for more information.
