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. Last Updated: 07/27/2016

Livedoor Ousts Its President

TOKYO -- Livedoor said it would oust founder Takafumi Horie as president after the 33-year-old Internet millionaire was arrested on fraud charges.

Kozo Hiramatsu, 60, a Livedoor executive and president of Livedoor's accounting software unit, Yayoi, became president as of Tuesday, but the company has not named a replacement for Horie as chief executive, a company spokesman said.

Horie would stay as a director for now, since Livedoor has not received his resignation, the spokesman added.

In a separate announcement, Livedoor restated its interim earnings results for the six months ending on March 31, 2005, slashing cash flow from operations by nearly 90 percent to 1.15 billion yen ($10 million) and shifting it to cash flow from investment.

Shares of Livedoor affiliates rose Tuesday for the first time since prosecutors raided the company's Tokyo headquarters on Jan. 16. The raid triggered a plunge in Japanese stocks that led the exchange to halt trading. The shares had plunged 75 percent since the raid, erasing $4.8 billion of market value.

Three other Livedoor executives were arrested Monday to face charges they provided false information about an acquisition and overstated earnings.

(Bloomberg, Reuters)