TOKYO, May 26, 2010 -- Rakuten, Inc. (“Rakuten,” Chairman and CEO: Hiroshi Mikitani, Head Office: Shinagawa-ku, Tokyo), Japan’s leading internet company, has announced that it will form a Joint Venture with Indonesia’s largest media group, PT Global Mediacom Tbk (“Global Mediacom,” Group President and CEO, Hary Tanoesoedibjo, Head Office: Jakarta), to launch Rakuten Ichiba's business in the country. Rakuten will own 51% shareholding and Global Mediacom 49%.
Global Mediacom is the largest and the most integrated media group in Indonesia with businesses encompassing three national free-to-air televisions targeting all market segments in Indonesia, and local TV networks operating in major cities including all Nielsen cities, such as Jakarta, Surabaya, Medan, Palembang, Bandung, Semarang, Denpasar, Makasar, Jogjakarta and Banjarmasin. Collectively, the free-to-air televisions have consistently captured the largest audience shares in Indonesia. Global Mediacom also has the largest market share in the pay-TV industry through two brands, Indovision and Top TV. In addition, Seputar Indonesia is the second largest newspaper publisher in Jakarta and third largest in Indonesia, one of the largest radio networks, one of the largest value added services, and the third largest internet news and information portal site in terms of daily page views - Okezone.com.
Rakuten is a full-line internet service company in Japan. It operates Rakuten Ichiba, Japan’s leading internet shopping mall, being one of the leading global B2C e-commerce companies. Its leading position in the market is based on its extensive product line-up, including over 50 million items registered on Rakuten Ichiba, and the business expertise for merchants, especially its e-commerce platform technology and consulting capabilities. With its unique business model, which leverages on the integrated strength and synergies of leading internet businesses such as e-commerce, online travel reservation, internet banking, online securities brokerage, credit card and others, Rakuten offers a diverse lineup of personalized services to more than 64 million Rakuten Group Members.
Rakuten and Global Mediacom have reached an agreement to establish a Joint Venture whereby the two companies will jointly operate an internet shopping mall for Indonesian’s consumers. Rakuten and Global Mediacom are poised to launch the e-commerce site through the Joint Venture Company in the second half of 2010.
Indonesia boasts the fourth largest population (240 million) in the world and ASEAN’s largest number of internet users (33 million) with tremendous growth potential in the e-commerce business. Rakuten and Global Mediacom aim to build Indonesia’s No.1 internet shopping mall through the Joint Venture by combining Global Mediacom’s high profile and unparalleled marketing capability and Rakuten’s e-commerce platform technology and consulting expertise cultivated during the past 13 years as Japan’s largest internet shopping mall operator.
The Joint Venture will initially operate the internet shopping mall by offering domestically produced products to Indonesian consumers by local merchants. In the mid-to-long term, the Joint Venture will build a global e-commerce transaction platform by working in close cooperation with Rakuten Ichiba Japan, Rakuten Ichiba Taiwan, and TARAD.com of Thailand. Also, it will join hands with an Internet shopping mall in China, which Baidu, Inc. and Rakuten will launch jointly, as well as with Buy.com, Inc., which will be acquired by Rakuten.
Outline of Joint Venture
(1) Business Overview Operation of Internet shopping mall in Indonesia
(2) Planned Capital 40,000,000,000 Rp (Approx. 4.4MM USD Rate:USD=9100Rp)
(3) Ownership Ratio Rakuten, 51% : Global Mediacom, 49%
(4) Representative Plan to dispatch from Rakuten
About Global Mediacom
Global Mediacom is the largest and the only integrated media group in Indonesia with operations encompassing content and advertising based media, subscriber based media and media support and infrastructure.
Content and advertising based media is operated through PT Media Nusantara Citra Tbk. ("MNC). MNC's operations encompass content production, content distribution, national free-to-air television networks, local free-to-air networks, production of 24 hour TV program channels, newspaper, tabloid, magazine, radio networks, online media, value added services, advertising agency and talent management. MNC has the largest content library in Indonesia, comprising 90,000 hours of entertainment and news content, which is increasing by more than 12,000 hours per year.
Subscriber based media is operated through PT MNC Sky Vision, the largest pay-TV operator in Indonesia through two leading brands under their respective target markets-Indovision and Top TV. Mediacom has another subsidiary with its own pay TV license called Nusantara Vision with its brand - OkeVision.
Media support and infrastructure is operated by PT Infokom Elektrindo which provides broadcast tower, transmission system and as an SMS gateway for the Mediacom Group.
In Japan, Rakuten has approximately 64 million registered members and sales in 2009 totaled US$3.2 billion. Its core business “Rakuten Ichiba” is Japan’s largest Internet shopping mall and offers more than 50 million products by over 33,000 merchants, some of whom have turnover of more than US$1 million per month. In addition to its Internet shopping mall, Rakuten, which has more than 6,000 employees, is engaged in other Internet businesses such as travel agency and financial services.