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March 05, 2003

Digital Garage to Bail Out ALC

Japanese Internet pioneer Digital Garage announced recently that it will pay ¥600 million for a 20% stake in a new company planned to take over the business of troubled publisher ALC Press. The company is to start operating in June, with a board of directors from both firms, and DG is looking to double its shareholding in the next couple of years. The companies announced plans for a comprehensive business tie-up back in December, but the latest development comes in the wake of ALC's failed real estate dealings. The new alliance will bring DG's marketing, technical and e-commerce experience to ALC's website "Space ALC", a leading language portal that receives some 50 million page views a month. The companies plan to develop so-called "killer contents" for the rapidy expanding broadband arena, with online English learning at its core, to make Space ALC the "21st Century Digital Network Publisher."

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