The Japanese parliament today adopted legislation that will prevent non-Japanese companies from acquiring shares to control domestic broadcasters. Under the revised radio and broadcast laws approved by the upper chamber, the combined stake that non-Japanese companies may hold in a Japanese broadcaster - either directly or thorough a Japanese affiliate - will be limited to less than 20 per cent.
The law change is the result of an attempt earlier this year by Japanese Internet company Livedoor, backed by US capital, to take over a radio station. Livedoor had issued convertible bonds to a US investment bank to help fund the acquisition, raising the possibility that the US bank could indirectly control the radio station if it converted the bonds to shares.
