DoCoMo eyes Tower Records.(MERGERS AND ACQUISITIONS)(Brief Article)

2.5G-3G, December, 2005

NTT DoCoMo is a major mobile service provider in Japan. It is planning to acquire a 42 percent stake in Tower Records Japan to control the music software retailer company in the country. DoCoMo will buy shares of the company that will include a part of the shares held by Nikko Principal Investments.

At present, Nikko is the largest shareholder of Tower, with total stake of 32.24 percent. DoCoMo will pay $108.2 million for the said deal. DoCoMo wishes to expand its 3G user base by providing credit card and e-money facilities at 78 Tower Records music stores in the country.

DoCoMo s users will be able to receive discounts and buy CDs without paying cash. Around 6.5 million subscribers are using the payment facilities. DoCoMo s cellphone readers are...

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