Livedoor Japan Stock Scandal
Japan’s NHK has reported that Livedoor, the Japanese Internet Media, Blog & Search company, and its offices will be (or have been) searched by Japanese authorities. Livedoor is reportedly in violation of Japanese Securities and Exchange Law.
NHK is also reporting that at the moment the residence of Livedoor President Takafumi Horie will also searched. Livedoor become the object of Japan Securities and Exchange suspicion after a stock split. Livedoor spokesman denied that prosecutors had searched the company’s central-Tokyo headquarters or Horie’s home, but declined to comment further.
Horie is apparently quite an innovative and aggressive figure in Japanese business. Livedoor may also be under the hot seat of shareholders as in December the company’s chief holders voted not to pay out dividends, which Livedoor said benefits shareholders via continuing its growth, which would push its share prices up. “We will pay dividends if it stops growing,” Horie-mon said.
Since being listed on the Tokyo Stock Exchange in April 2000, Livedoor has never paid dividends on its shares. Livedoor has over 100 divisions ranging from Auto Rentals to DVD Rentals in Japan and is the parent company of European portal SeekOver.com.
We will have more on the Livedoor story as it plays out.