In its biggest investment to date, KDDI Corp, Japan's second mobile phone operator, has agreed to purchase Liberty Global Inc's 37.8 per cent stake in the Japanese telecommunication services provider Jupiter Telecommunications Co. , a move that will bring them in direct contact with millions of Jupiter's subscribers, a considerable addition to their customer base.

The $4 billion dollars that KDDI shelled out for the deal is 65 per cent more than Jupiter's closing share price on Friday, leading many experts to believe that the cost of the deal which is being financed by bank loans may overshadow any benefits. Yusuke Tsunoda, an analyst at Tokai Tokyo Securities Co. commented, "The deal looks a bit expensive".

For John Malone's Liberty Global, it was a chance to concentrate their efforts and resources, which would be greatly enhanced following the consummation of the Jupiter deal, on their European and American operations.

KDDI defended their end of the bargain by stating that the purchase would give them a much wider consumer base. "This investment is aimed at increasing our customer base through a deeper involvement with Jupiter. This will also serve to reduce our reliance on fiber access points supplied by NTT group", averred KDDI President Tadashi Onodera.