Capping a bruising takeover battle that had continued more than two months, Livedoor Co., an Internet service provider, and Fuji Television Network have reached a compromise agreement. Although the package may contain few surprises, the way in which the two companies fought for control of Nippon Broadcasting System has raised fundamental questions about the methods of corporate acquisition.
Under the deal, Fuji TV will purchase all of Livedoor's holdings in radio network Nippon Broadcasting and make it a wholly owned subsidiary. In addition, Fuji will acquire a stake in Livedoor through a third-party allotment of new shares. It remains unclear, though, what kind of business alliance will be formed between the up-and-coming Internet portal operator and one of the nation's biggest TV broadcasters.
The high-profile buyout drama has focused attention on questions that had gotten short shrift in the past. For example, whose interests should a corporation serve first? What is the real purpose of purchasing a corporation? Is it feasible to integrate Internet and broadcasting services?