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DoCoMo Buys Direct Marketing Co

(06 Apr 2009, BWCS Staff)

Japanese mobile operator NTT DoCoMo is to take control of a popular, privately held,  direct marketing company in Japan for Yen 31 billion (US$308 million). The move is said to be aimed at growing the mobile giant's m-commerce business as it bids to boost mobile data revenue in a near saturated market. The company is also reportedly strengthening its financial business, including electronic money payment and credit cards.

DoCoMo will take a majority stake of 51% in the Nagoya-based, Oak Lawn Marketing Inc, which specializes in selling electronic goods and DVDs via the internet, TV and from catalogues. Oak Lawn's success in recent years has been largely attributed to a series of work-out DVDs distributed in Japan and to its Shop Japan TV shows. For the financial year ended March 2008, Oak Lawn grew its revenues by 75% to Yen 39.9 billion. 

The Japanese mobile giant appears to be in expansionist mood - in February of this year it was finally given the green light by the Indian government for its proposed purchase of a stake in local telco Tata Teleservices. Now that the purchase has finally been rubber-stamped, the Japanese operator can begin its move into the world's fastest growing mobile market. DoCoMo will acquire a 27.31% holding in Tata Teleservices for a cost of 129.3 billion rupees (US$2.6 billion).



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