Liberty Global (LG) confirmed plans to sell its 37.8% stake in Jupiter Telecommunications—Japan’s largest cable operator—to KDDI Corp. in a US $4 billion transaction that is intended to facilitate LG’s shift in strategic focus towards Europe. Announced on Monday, the deal ends a 15-year foray in Japan for LG, whose predecessor-in-interest, Liberty Media, joined forces with Sumitomo Corp. to form Jupiter in 1995. (LG assumed Liberty’s stake in Jupiter after LG was spun off from Liberty in 2005.) In addition to its video offerings, Jupiter provides mobile telephony and broadband Internet services that would enable KDDI, Japan’s second largest wireless operator and a key provider of fixed line services in that country, to compete more effectively against market leader NTT. KDDI’s cable unit, Japan Cablenet, is the second largest cable operator in Japan, and KDDI president Tadashi Onodera indicated that the Jupiter deal will give KDDI access to additional cable infrastructure that may enable KDDI to gain independence from access points owned by NTT. Coming on the heels of LG’s $3.7 billion purchase of German broadband provider Unitymedia, the Jupiter pact would free up $3 billion in capital (following the repayment of US $836.8 million in debt) that LG would apply towards its cable assets in Europe. The purchase price of ¥140,000 (US $1,564) per share represents a 65% premium over Jupiter’s closing share price as of Friday. Noting that, upon completion of the Jupiter and Unitymedia deals, cable operations in Europe will constitute 85% of LG’s business, LG CEO Michael Fries said, “this transaction gives us further liquidity and capital to repurchase our stock and consolidate in our core markets.”