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KDDI to restructure streaming business, combine assets with TV Asahi

KDDI Corp.'s board of directors decided to have LDEX Preparatory Co. Inc. succeed an absorption-type split of the business involved in the planning and operation of Video Pass, a flat-fee and pay-as-you-go video streaming service.

Japanese company KDDI and its unit LDEX are scheduled to sign an agreement on the plan on Jan. 7, 2020.

The transaction is subject to approval and authorization from relevant authorities, with an effective date of March 2, 2020. Half of the LDEX shares will be transferred to TV Asahi Corp. from KDDI on the effective date of the transaction, after which KDDI and TV Asahi will jointly operate LDEX.

KDDI and TV Asahi will use LDEX to combine their assets, such as KDDI's 5G, video drawing and customer base technologies, together with TV Asahi's video content centered around terrestrial programs and terrestrial broadcasts.

The new company is expected to expand into new forms of content that utilize telecommunications, digital advertising and other technologies. The name of the service and the details of the video streaming service will be announced once finalized.