Tokyo: Japan's Fuji Television Network Inc said on Friday it will enter the Internet service provider business by taking a controlling stake in its ISP affiliate, reflecting a push by Japan's broadcasters into new media.The leading Japanese broadcaster and its computer software unit Fujimic Inc will boost their stakes in the affiliate, people world co, in early July to 90 per cent from 20 per cent, Fuji said.
The affiliate is capitalised at 499 million yen ( 4.75 million).
Fuji television will also inject an extra 535 million yen or 10,700 shares together with Fujimic to the ISP provider, which would push up the group stake to 95.15 per cent, a Fuji spokesman said.
Fuji said it plans integrate Internet services with television networks by improving online content.
Japanese broadcasters and other media have been urged to improve their content to survive a wave of new media such as digital satellite broadcasting, broad-band telecom services, cable television and the Internet.Fuji aims to maintain a close tie with IBM Japan Ltd, a Japanese unit of IBM corp, which currently owns a 36 per cent stake of people world. Under the deal, IBM Japan's stake will fall to below five per cent.
As of 0503 GMT, Fuji Television shares were down 1.16 per cent at 1.70 million yen in Tokyo.
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