The saga between Rakuten and major Japanese TV broadcaster TBS has finally come to an end. After years of battling out in court (and on the Tokyo Stock Exchange), TBS has bought back Rakuten’s entire 19.94% stake yesterday.
The purchase ended a capital partnership, which began back in 2005 when Rakuten first started toying with the idea to merge with the TV station. In 2008, TBS changed its internal structure and effectively made it impossible for a single investor to own more than 33% in the company.
Rakuten then demanded TBS to buy back the shares it held, but the problem was the price. Japan’s Supreme Court rejected Rakuten’s appeal last month, setting at 1,294 yen a share. Rakuten, however, had bought the 37.77 million TBS shares for an average price of 3,095 yen.