The takeover battle between Tokyo Broadcasting System (TBS) and Rakuten has ended in a draw of sorts -- for now at least. The two companies have buried the hatchet, so to speak, and have agreed to start talks on forming capital and business ties.
Rakuten, Japan's top Internet retailer, has dropped its bid to integrate management under a joint holding company and agreed to deposit about half of its 19-percent equity stake in TBS in a bank trust. In response, the broadcaster has softened its attitude. Details of the agreement, such as final stakes and contents of cooperation, are to be worked out by next spring.
It is uncertain how the talks will develop in the months ahead. If no significant progress is made, the face-off that began about two months ago could come to a head again. It seems more likely, though, that the negotiations will end inconclusively without achieving a much-touched "fusion" between broadcasting and the Internet. In fact, that is what happened to the similar talks earlier this year between Fuji Television Network and Livedoor Co.