Livedoor - Why Do They Have Money?

[Mulboyne]

Here's a pretty good story that talks about an analyst who predicted Amazon's reliance on convertible bonds eventually killing it.

He was right (Amazon got into trouble) and he was wrong (they survived). Cleverly, he left the business after being right and before he was wrong. He works for one of the big hedge funds now.

[Captain Japan]

Livedoor rejects Fuji TV's offer to buy Nippon Broadcasting shares
Mainichi

Livedoor Co. has rejected a proposal made by Fuji Television Network Inc. (Fuji TV) that it would buy shares of Nippon Broadcasting System Inc. from the ambitious Internet service provider through the takeover bid (TOB) system, sources involved in the transactions said Saturday.

Fuji TV attempted to secure a majority stake in Nippon Broadcasting by purchasing all its shares held by Livedoor, according to the sources. Livedoor, the largest shareholder in Nippon Broadcasting, and Fuji TV are keenly competing over the control of the radio station operator.

Through the Daiwa Security-Sumitomo Mitsui Banking Corp. group, Fuji TV proposed on Friday that it would buy Nippon Broadcasting shares from Livedoor through the TOB system....the rest...

[GuyJean]

Livedoor rejects Fuji TV's offer to buy Nippon Broadcasting shares

I just saw a simple summary of the Live/Fuji/Nippon orgy on NHK..

It appears to me that it's not the fact that Live is trying to buy 40% of Nippon's shares, effectively holding the most shares and controlling the company. It's the convertable bonds Lehman bought from Live that Lehman could convert to shares at any time. Lehman, a foreign company, could then 'indirectly' control Nippon since Japan has no law against 'indirect gaijin control'... Yet.

I just saw all the government monkeys scratching their barcode heads saying, "Gosh, there's no law against that. Maybe we should make one.. ".

I find it surprising that, with all the xenophobia and obsession over detail on all government documents, they've never once thought of the possibility a foreign company indirectly controlling one of it's media companies.

So, it's not only Horie's attack on the dinosaurs, but it's also the gaijin connection! Aliens and dinosaurs.. Land of the Lost, baby! ]http://www.fuckedgaijin.com/forum/album_mod/upload/ee2e5373b51c4b6801e1698c50ba4b30.jpg[/img]

GJ

[Mulboyne]

Lehman, a foreign company, could then 'indirectly' control Nippon Broadcasting

I saw that. It is a non-issue. You don't "indirectly control" a company by owning convertible bonds. If Livedoor's share price plunged, it is feasible that Lehman could convert and own shares in excess of the permitted foreign ownership (I think there is a 20% ceiling for broadcasters) but the repercussions would be immediate - the company would lose its licence so there is no reason for Lehman to consider that. Also remember that Lehman has actually sold short so any converted shares would be immediately delivered to cover the short position i.e. Lehman would only "own" them for about thirty seconds before selling them.

I actually do think that Japan needs to tighten share trading rules since it is ridiculous that current takeover regulations do not cover all forms of share transactions. While they are at it, they should see their way to outlawing the way in which Mitsubishi has gone about the takeover of UFJ.

I also find it ironic that most politicos are panicking about a foreign M&A invasion ( the reason behind all the mergers in the pharmaceutical industry) when the Fuji TV affair shows that there is just as potent a threat from Japanese companies.

Horie does appear to be losing the PR battle, though, and that is an important area in any country.

[GuyJean]

Horie does appear to be losing the PR battle, though, and that is an important area in any country.

Especially when NHK is screaming 'gaijin takeover' when it's a non-issue.. They had me scared.

Eighty percent of the 10 minute NHK story was devoted to the possibility of Lehman 'indirectly' controlling Nippon and asking lawmakers how they felt about it.

When in doubt, cry 'gaijin!'..

GJ

[Captain Japan]

I actually do think that Japan needs to tighten share trading rules since it is ridiculous that current takeover regulations do not cover all forms of share transactions. While they are at it, they should see their way to outlawing the way in which Mitsubishi has gone about the takeover of UFJ.

Companies to be protected from takeovers
Gomiuri Shimbun

The Justice Ministry decided Tuesday to establish measures to protect companies from hostile takeovers that would make it more difficult to approve mergers by making the requirements on shareholder resolutions stricter.

The ministry intends to include the measures in a bill to revise the Commercial Code and other legislation on corporate affairs to be submitted in the current Diet session.

Under the Commercial Code, decisions on such issues as approval of mergers of joint-stock companies and replacement of company executives are made at meetings attended by shareholders with a majority of voting rights, with the approval of at least two-thirds of attendees necessary.

The bill is intended to make these requirements stricter.

Companies' articles of incorporation would have stricter rules on resolutions to be adopted at shareholders meetings so that decisions on merger approvals or replacement of directors would become more difficult.

The bill would allow companies to issue stocks with veto power to friendly shareholders. These shareholders could exercise their veto if a hostile takeover was put on the agenda at a shareholders meeting.

The bill also would allow for "poison pills" to be devised by companies to combat hostile takeover bids.

When triggered, a poison pill can allow shareholders to acquire additional shares at below market price, thereby increasing the number of outstanding shares, diluting the bidder's holding and raising the cost of the takeover.

[Mulboyne]

The bill would allow companies to issue stocks with veto power to friendly shareholders. These shareholders could exercise their veto if a hostile takeover was put on the agenda at a shareholders meeting

That sounds weird.

Most of the other proposals are on the table anyway since regulations on stock-for-stock mergers are to be loosened. Basically, it will become a little easier for foreign companies to acquire a Japanese company by paying in shares rather than cash i.e. shareholders of the target company would get shares in the acquirer or, more likely a "holding company" set up by the acquirer.

These rules are actually better but not a lot better, however, the spectre of gaijin companies taking over Japan Inc. has sparked panic. Pharmaceutical companies have been in a mergermania as they try to bulk up and become to big to acquire.

Poison pill legislation is no bad thing since it exists elsewhere in the world but it would be nice if the legislators could tidy up the takeover code before they bulk up the defences.

[Captain Japan]

Takafumi Horie, CEO, livedoor Co., Ltd.
Professional Luncheon, Takafumi Horie, CEO, livedoor Co., Ltd.
Foreign Correspondents' Club of Japan

(12:00-14:00 Thursday, March 3, the speech and Q & A will be in Japanese with English interpretation)

Takafumi Horie has Japan talking. The bid by his company, Livedoor Co., to aquire Nippon Broadcasting System Inc. (Nippon Hoso) has pushed him and the share purchase into the Japanese media spotlight.

The move has been criticized by the government and financial community but Livedoor has countered that it has done nothing against the law. That may be so for now but the Financial Services Agency says the move has prompted a reconsideration of the law governing off-hours trading.

Fuji Television Network Inc.'s tender offer for Nippon Broadcasting expires on March 2 and on March 3 Horie will speak at the FCCJ. Hear him address the purchase, his plans for Nippon Broadcasting and the wider prospects for integration between Japan's Web-based portal services and traditional mass media.

To help us plan properly, please reserve in advance: at the Front Desk (3211-3161) or online (http://www.fccj.or.jp -- please log in to reserve). The charge for Associates and guests/FCCJ Working Press Members is 3,150 yen/2,100 yen for the hot meal, and 1,700 yen/1,200 yen for the sandwich plate, tax included. Reservations canceled less than 24 hours in advance will be charged in full. If you do not make a reservation or reserve late, your meal may vary from the scheduled menu.

* To suggest a speaker for a club event, send your idea to SpeakerIdeas@FCCJ.or.jp.

Professional Activities Committee

[Captain Japan]

NBS seeks to block Livedoor Fuji TV uses 'poison pill' option; Horie to seek injunction today
Gomiuri Shimbun

Nippon Broadcasting System Inc. said Wednesday it had decided to give Fuji Television Network Inc. the right to subscribe the radio station's new shares as a way of preventing Internet service provider Livedoor Co. from acquiring an absolute majority stake in NBS.

In response, Livedoor President Takafumi Horie said Wednesday night he would seek Thursday a court injunction under the Commercial Law and the Securities and Exchange Law to prevent Fuji TV employing the "poison pill" tactic. He told reporters his firm would continue buying up NBS shares to increase its stake to more than 50 percent, as had been announced.

NBS' board of directors decided to issue up to 47.2 million shares between March 25 and June 24 to be exclusively subscribed by Fuji TV, in which the Tokyo-based radio station's currently owns the largest stake of 22.51 percent, NBS President Akinobu Kamebuchi told a press conference in Tokyo.

The volume of the planned issuance exceeds the tally of 32.8 million shares outstanding lately. As a result, the NBS board's decision in favor of Fuji TV will effectively block Livedoor's bid to acquire a stake of more than 50 percent in the radio station, an explicit tactic to wield influence in the management of the television network.

Wednesday's twist in the tale concerning the fate of the majority ownership of NBS came 15 days after Livedoor, a Tokyo-based startup company, made a surprise announcement on Feb. 8 that it owned about 35 percent of NBS following an after-hours share buyout that lasted only 28 minutes.

Fuji TV has been on the defensive, opting on Feb. 10 to lower the target of its ownership in NBS via a publicly disclosed takeover bid to 25 percent from an original goal of more than 50 percent, set on Jan. 17.

The television network, whose sales are far bigger than those of NBS, aims to make the radio station company a subsidiary.

Under the Commercial Law, a 25 percent ownership in NBS would free Fuji TV from influence or intervention in its operations by Livedoor via NBS.

Before Horie announced he would seek an injunction, Fuji TV Chairman Hisashi Hieda, appearing in the press conference with the NBS president, said, "We'll fight in court" in the event of a Livedoor lawsuit.

NBS said the exercise price to subscribe to new equities will be 5,950 yen per share, identical to the tender price offered by Fuji TV in its takeover bid for NBS shares. If the television network fully exercise the option, it will have to pay a total of 280.8 billion yen.

As of Monday, Livedoor owned about 37.7 percent of the radio station's outstanding shares. If Fuji TV subscribes to all of the new issues, Livedoor's stake will contract to about 15 percent. No matter what would happen to Fuji TV's takeover bid, the TV network's ownership will rise to more than 60 percent.

NBS President Kamebuchi told the press conference that the radio station's corporate value would be lost if it had to come under the control of Livedoor, a situation that would force the radio station to depart from Fujisankei Communications Group. The alliance also includes The Sankei Shimbun.

Kamebuchi questioned Livedoor's method of acquiring NBS shares, which he said was "not transparent."

He said the radio station's board concluded that the public obligation of the mass media company to serve the public's interests would not be compatible with Livedoor's becoming a majority shareholder. "Livedoor often resorts to methods that could be seen as illegal." Kamebuchi said.

In a related development, NBS said it agreed to lend Daiwa Securities SMBC Co. a total of 220,000 shares with voting rights out of its portfolio of 573,000 shares it owns in Fuji TV.

The stock lending accord, valid from Friday to March 15, 2007, is aimed at helping Fuji TV avert a situation in which its broadcasting license might be revoked.

Under the Commercial Law, the radio station will retain the ownership but lose its voting rights for Fuji TV once the television network's ownership in NBS exceeds 25 percent. If this happens, voting rights of foreign shareholders in Fuji TV will rise to more than 20 percent, compared with 17.93 percent as of Feb. 1.

The Radio Wave Law stipulates a broadcaster's license will be canceled if foreign shareholders' combined voting rights account for 20 percent or more.

But an increase in voting rights in the hands of Daiwa Securities SMBC--which has been acting in support of Fuji TV--through the stock-lending solution will keep the portion of foreign shareholders' voting rights from swelling to the prohibited level.

[Captain Japan]

I saw that. It is a non-issue. You don't "indirectly control" a company by owning convertible bonds. If Livedoor's share price plunged, it is feasible that Lehman could convert and own shares in excess of the permitted foreign ownership (I think there is a 20% ceiling for broadcasters) but the repercussions would be immediate - the company would lose its licence so there is no reason for Lehman to consider that. Also remember that Lehman has actually sold short so any converted shares would be immediately delivered to cover the short position i.e. Lehman would only "own" them for about thirty seconds before selling them.

In any case, the Gomiuri isn't happy one bit...
Keep broadcasters out of foreign hands
Gomiuri Shimbun

Since they are limited, airwaves are considered precious public assets, with frequencies allocated to broadcasters by the government.

Broadcasting companies, which do business over those airwaves, have important responsibilities to the public, including transmission of accurate information in case of natural disasters.

Therefore, the Radio Law stipulates that the license of a radio communication company will be canceled if one-third or more of its outstanding shares with voting rights are owned by foreigners.

The law is even tougher on radio and television broadcasters, which stand to lose their license if 20 percent or more of their shares are owned by foreigners.

If the public nature of airwaves and a broadcasting company is taken into consideration, it becomes a matter of course to enforce restrictions on foreign investment.

However, the Radio Law has a major flaw. Though it restricts direct foreign investment in a broadcasting company, the law is not clear on investment by a Japanese company in which a foreign company holds a major stake. The law must be revised as soon as possible to prevent a foreign company gaining indirect control over a broadcaster.

===

Horie has designs on Sankei


The problem of indirect control was highlighted when Internet service provider Livedoor Co. started buying up the shares of Nippon Broadcasting System Inc.

To buy them, Livedoor raised funds by issuing convertible bonds to U.S. securities firm Lehman Brothers.

If those bonds are converted to shares, Lehman likely will become a major shareholder controlling Livedoor.

In that case, through the capital relations among Livedoor, NBS, Fuji Television Network Inc. and The Sankei Shimbun, it might be possible for the foreign investor to influence The Sankei Shimbun, a member of the Japanese press.

In fact, Livedoor President Takafumi Horie criticized Sankei's editorial policy and said he would like to make the daily newspaper more focused on entertainment or business news.

Most major countries except Britain restrict foreign investment in broadcasting companies. The United States and France has laws prohibiting even indirect foreign control of domestic broadcasters.

===

Law out of step with times


In 1950, when the Radio Law was established, nobody could have predicted today's globalization of media. However, it is negligent of the government to leave that legal loophole unplugged by failing to keep abreast with changes that have occurred in society since then.

NBS decided Wednesday to give Fuji TV the right to subscribe to its new shares because it concluded that its remaining in the Fujisankei Communications Group was in the interest of its shareholders.

In response, Livedoor, whose ratio of stock holdings in NBS will drop as a result, sought an injunction at the Tokyo District Court to prevent NBS issuing share warrants to Fuji TV.

Livedoor and Fuji TV are expected to have a fierce court battle over the interpretations and applications of the Commercial Law and the Securities and Exchange Law.

We await the outcome of the trial with interest. Meanwhile, one thing should not be forgotten. Livedoor's buyout attempt is not a mere issue of share trading--it involves the issues of freedom of speech and expression.

[Captain Japan]

More on Lehman's future broadcasting network...
Lehman says it will not enter media business by backing livedoor
Kyodo via Japan Today

TOKYO — Lehman Brothers said Thursday it has no intention of becoming a major shareholder in livedoor Co through its helping to provide financing for the Internet service provider's takeover bid for Nippon Broadcasting System Inc.

The statement denied speculation that the U.S. brokerage may indirectly control the radio broadcaster and Fuji Television Network Inc. by offering funds for 80 billion yen worth of convertible bonds that Livedoor issued Thursday to finance the acquisition. Nippon Broadcasting is Fuji TV's biggest shareholder. (Kyodo News)

[GuyJean]

..Lehman likely will become a major shareholder controlling Livedoor...

Lehman Brothers, the global investment bank, said that it purchased 80 billion yen of private convertible bonds from Livedoor Co. today. Convertible bonds are widely used capital markets instruments.

Lehman Brothers' role in this transaction is to provide financing. The Firm's purchase of the convertible bonds is intended to help finance Livedoor. Leman Brothers does not intend to control Livedoor nor to enter the Japnanese media industry.

Lehman Brothers, an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net worth individuals worldwide. Blah, blah, .....

Isn't Nippon issuing Fuji 'coupon' bonds, or something? Boosting the total shares of Nippon along with Fuji's percentage of stock?

GJ

[GuyJean]

Stolen GuyJean thunder....

Bastage!

GJ

[Mulboyne]

Isn't Nippon issuing Fuji 'coupon' bonds, or something? Boosting the total shares of Nippon along with Fuji's percentage of stock?
GJ

The press is it a bit hazy on the details but it looks like Nippon plans to issue warrant bonds to Fuji which offer them the right to convert into shares. That's a different strategy from Fuji looking to own 25% of NB in their takeover which would cancel NB's (and, by implication, Livedoor's) voting rights in Fuji.
This would be illegal in the UK (not necessarily everywhere, though) and it is unclear what the Japanese legal code legislates.

[L S]

Just saw this...

Livedoor Files For Injunction On Nippon Broadcasting Warrants
TOKYO (Nikkei)--Livedoor Co. (4753) on Thursday filed for a temporary injunction to stop Nippon Broadcasting System Inc. (4660) from issuing equity warrants to Fuji Television Network Inc. (4676).

The Web portal operator and investment arm Livedoor Partners jointly requested the relief in Tokyo District Court. Were the warrants to be exercised by Fuji TV, Nippon Broadcasting would likely become a subsidiary. Livedoor, which reportedly held 40.5% of the radio broadcaster's voting shares as of Monday, took the legal measure to protect its position as Nippon Broadcasting's top shareholder.

Livedoor claims that the issuance of the share warrants is an "extremely improper tactic designed to maintain Fuji TV's control of Nippon Broadcasting." The firm also argues that the issuance was not approved at a Nippon Broadcasting shareholders meeting despite the preferential redemption price for Fuji TV. And Nippon Broadcasting's board may have intentionally led share prices down, Livedoor says.

"The purpose for the massive amount of funds raised is unclear, and Nippon Broadcasting's general shareholders will suffer significant harm," according to a senior Livedoor official.

(The Nihon Keizai Shimbun Friday morning edition

[Mulboyne]

The press hasn't really got a proper grasp of the financial and legal details of the Livedoor/Fuji TV/Nippon Broadcasting deal but this brief profile of Livedoor is one of the best I've seen so far:

Business Week: Japan's Livedoor: From Web Hosting To DVD Rentals To...

[Captain Japan]

Lehman Feels Japan's Wrath. Investors Beware: William Pesek Jr.
Bloomberg

March 4 (Bloomberg) -- It's quite feat, yet Lehman Brothers Holdings Inc. is on the hot seat in Japan for doing what investment banks do: helping clients secure financing.

The fifth-biggest U.S. securities firm is getting more bad press here than even Citigroup Inc. did last year when its private banking unit ran afoul of Japanese regulators. The unusually adversarial dust up could affect foreign investment banks' ability to do business in Japan.

Lehman figured its association with Internet investor Livedoor Co. was of the standard deal variety. Livedoor needed financing to bid for radio station operator Nippon Broadcasting Co., and turned to Lehman. The way Lehman provided it caused uproar the likes of which few investment banks have experienced.

Japan's business and political establishments -- not that they are all that separate -- took umbrage with Lehman's purchase of 80 billion yen ($762 million) worth of convertible bonds sold by Livedoor. The concern is this: If Lehman converted the bonds to shares, it would have a substantial, if indirect, stake in a Japanese media company.

Lehman tried to allay concerns that its deal with Livedoor is a kind of Trojan horse to enter Japan's media business. To no avail, though. Lehman is being derided as the vanguard of an assault on Japan's closed business world. Suddenly an economy that has seen few hostile takeovers is hunkering down for a foreign onslaught....the rest...

[Mulboyne]

Lehman Feels Japan's Wrath

Oddly enough, there is something about Lehman's activities which you could criticize but the press has gone for the wrong target. When Lehman agreed to buy the CB from Livedoor, their proprietary desk would have immediately cornered the "borrow" in the shares. That is to say, they would have known the way to increase the value of the convertible bond they had just bought would be to sell Livedoor shares short. To sell shares short, you need to borrow shares to deliver to the buyer. When you "cover the short", you buy shares back and return these to the lender.
Given the size of the transaction, Lehman would have wanted to borrow every share available.
The question to ask is whether the trading and corporate finance activities were adequately separated. On balance, this is nit-picking but with the press out for blood on any count, it is a measure of how little understood this type of finance is that no-one has looked at that aspect.

[gkanai]

Another non-Japanese Livedoor article...

Japanese Internet "guru" targets portal bigger than Yahoo Japan

Takafumi Horie, founder and chief executive of Livedoor, said the portal would ride off the back of radio network Nippon Broadcasting Systems if his bid for the media group was successful.

"We aim to create a new, larger Yahoo," Horie said Thursday, adding: "It's going to become the biggest business model."

The 32-year-old businessman, considered by some a "guru", quit his studies at the University of Tokyo to set up Livedoor nine years ago after recognising the business potential of the Internet.

Since then, his computer network development and consulting firm has grown rapidly through acquisitions raising the ire of traditional media operators in Japan.

One of my Japanese friends has a theory that Horie is a puppet of some other entity, perhaps mafia, perhaps something else. It's kinda far-fetched but at the same time is interesting to consider.

[cstaylor]

One of my Japanese friends has a theory that Horie is a puppet of some other entity, perhaps mafia, perhaps something else. It's kinda far-fetched but at the same time is interesting to consider.

I highly doubt it. If anything, Fuji TV is run by right-wing kooks.

[canman]

I can't beleive how this battle between the two is being played out in the media. Everyday I turn on my tv to see the president of Fuji TV stadning in front of his house, speaking to reporters. Next we see Mr. Horie running around giving seminars, meeting the foreign press etc. Now it has become who do you like better. For the most part the information your posted Mulboyne, nobody and I mean nobody understands any of that. It is just "who do you like better". I did an informal poll of my students and 2 to 1 they voted against Hodie saying he is too "urusia"(noisy). What that has anything to do with this bunsiness battle is irrelevant, but in the court of public appeal I guess it carries a lot of weight.
Also why did the Livedoor lawyer up and quit today? I wonder what that was about?

[amdg]

I think you mean "urusai" Urusai! (sorry, just getting carried away there)

[GuyJean]

I did an informal poll of my students and 2 to 1 they voted against Hodie saying he is too "urusia"(noisy). What that has anything to do with this bunsiness battle is irrelevant, but in the court of public appeal I guess it carries a lot of weight.

Nothing against your students, but this is why Japan is laughed at by the rest of the world.. Oddly enough, they're simultaneously revered.. But make no mistake about it; Japan IS NOT a free-market, democratic, or capitalistic country.

GJ

[canman]

GuyJean you are so right. We are talking multi-million or even billion dollar deals, and people here are saying "well he looks a little fat, or he is noisy".
Its the same with politicians, its all a popularity contest. Kind of reminds one of the Roman bread and circuses deal. Keep the masses amused and they won't really see what is going on.

[Captain Japan]

You knew the dirt on Horie was just around the corner...and here it is:
Hotshot Horie handed hanky-panky hot potato
Mainichi

Takafumi Horie is young, vigorous, charming, charismatic and fabulously wealthy, all traits that should make him the darling of many Japanese, yet he's one of the most despised figures among the country's establishment.

Horiemon, as he's been dubbed by a media that adores him for his wonderful sound bites, used his position as president of IT powerhouse Livedoor Co. to try and buy a Pacific League baseball franchise last year, but missed out, apparently because his company was involved in the operation of a porno web site.

And now, as Horiemon continues to dominate headlines because of a messy boardroom brawl to take over radio broadcaster Nippon Broadcasting System, Shukan Shincho (3/10) notes the same Horie known for running through a bevy of beautiful girlfriends is being pursued by a powerful foe accusing him of a sordid sex-for-cash scandal....the rest...

[Ketou]

Chasing after Horiemon is the notorious quasi-fascist political organization Seikijuku, the weekly says. Seikijuku is known for the attempted assassination 15 years ago of former Nagasaki Mayor Hitoshi Motojima because he said the late Emperor Hirohito had to bear some responsibility for Japan's role in World War II.

And this goes along nicely with CS's last comment!

I highly doubt it. If anything, Fuji TV is run by right-wing kooks.

[CAkOS]

Sorry to interrupt...just got my new TV...
thank you for all the feed back guys I was wondering what was the livedoor thing all about

information information information

[Taro Toporific]

[quote="CAkOS"]Sorry to interrupt...just got my new TV...
thank you for all the feed back guys I was wondering what was the livedoor thing all about ]

Ok, livedoor started as successful Internet portal company is Japan similar to Yahoo Japan. They IPOed and ended up with a HUGE war chest of cash to buy other companies and to branch out into zillion IT start-up ventures.

Similar to Softbank's business model, livedoor takes a crap-shot at ANY venture just by issuing its more of its grossly-diluted shares of stock to finance take-overs.... aka "funny money."

The fact is livedoor really doesn't have a focus-plan-or-clue except growth using this funny money bootstapping and financial air-hooks. A lot of folks in Japan of jealous of livedoor because they are successful at their money-from-nothing-and-the-chicks-are-free business method.

Ok, Mulboyne take over in this livedoor explanation please.... because it's impossible for me to keep a straight face when I'm asked to write Japanese financial analysis.

[CAkOS]

Thakns Taro...

mmm funny money funny money...lemme think...Oh yeah! here is funny money!

http://www.funnymoneyband.com/index.html

So the livedoa guy is always into music?

[Mulboyne]

Although Horie's company is called "livedoor", he didn't start it. Horie started Livin' On the Edge, an internet advertising venture, which listed on the stock market in 2000. He bought a number of companies before, in 2002, acquiring Livedoor, As Taro says, Livedoor was set up as a free ISP funded by venture capitalists including Newbridge who agreed to sell to Horie.
He changed the company name to EDGE in 2003 before settling on Livedoor last year. Since that is the company with the biggest public presence, it made sense to use it as the company name.
Taro is right about the source of funds, though, Horie won the jackpot with his bubble IPO - as did Rakuten - which enabled him to buy all these businesses. Nippon Broadcasting was out of his league, however, which is why he sought external financing from Lehman.