Japanese communications provider KDDI (au) has announced that its subsidiaries Jupiter Telecommunications (J:COM) and Japan Cablenet (JCN) have concluded a merger agreement, which will see J:COM absorb JCN, effective 1 April 2014. According to a company’s press release, the newly merged company ‘will maintain J:COM’s medium-term strategies of evolving into a community partner by bolstering community-based services and of transitioning into a comprehensive media business group by enhancing its media content business’. Further, the JCN brand will be retired by 1 June 2014.
According to TeleGeography’s CommsUpdate, in October 2012 KDDI and fellow J:COM shareholder Sumitomo Corporation announced a plan to take full control of J:COM by buying out the remaining shareholders and then merging JCN into J:COM. KDDI and Sumitomo will take equal 50% stakes in the merged entity which will have around 52% of the country’s cable television market and 49% of the cable internet sector, with 9.2 million revenue generating units (RGUs) between them.