As Japan’s stock market heats up, so is acquisitions activity.

Japan’s electronic commerce leader Rakuten acquired the U.S. on-line affiliate marketing agency LinkShare for $425 million in Sepember. While Rakuten has made other acquisitions such as buying the "Tabi-no Madoguchi” online travel service from Hitachi Zosen Corp in 2003 for about $275 Million, this was the first major overseas acquisition, driven by Rakuten’s desire to enter foreign markets.

Meanwhile Access acquired PalmSource also in Sepember, for $320 million. In this case, the driving factor was technological. Access developed the original internet browser for the iMode platform and is today a major player in handset software platforms. PalmSource has strong Linux capabilities, which Access needs for its worldwide customer base.

Japan’s stock exchanges used to be the reserve of large corporate and institutional investors, with shares typically priced at $5,000 and up per single share. The opening of new markets like MOTHERS in 1999 has brought a wave of IPO’s by entrepreneur-driven new issues, in such fields as electronic commerce, mobile services, chain retailing, etc. The acquisition of controlling interest in toymaker Takara by mobile upstart Index this year may be the first shot, as power shifts from stagnant “old industries” to dynamic young ones.

This note has been provided by our colleagues at iLand6. iLand6 focuses on the Japan Communications Market, in sales development and financing.

iLand6 - Capital and Development Co., Ltd. Tokyo, Japan
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