Today, Japanese telco NTT Docomo (NYSE:DCM) has confirmed that its proposed stake in fashion-oriented e-store MagaSeek (TYO:3060) has been accepted. The Docomo acquisition amounts to a stake of 71.28 percent in MagaSeek in a boost to the telco’s burgeoning e-commerce efforts.
The acquisition deal is worth 2.04 billion yen (US$21.2 million), and is a lot more than the initial 42 percent slice that was initially proposed to MagaSeek and parent company Itochu Corporation – who will retain 25 percent of the e-commerce site under this new agreement.
MagaSeek’s shoppers are mainly female customers in their 20s and 30s, and Docomo will be hoping that a number of its 60 million subscribers (of whom seven million are now on 4G) will try out the e-store once it’s fully integrated into Docomo’s ‘dshopping’ mobile shopping service later this month.
At present, dshopping mainly sells foodstuffs after Docomo took a controlling stake in online supermarket Radishbo-ya last year. By 2015, Docomo aims for e-commerce to contribute seven percent of its revenues, and surely that will necessitate a couple more acquisitions as its dshopping service expands into more product areas.
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