Yasuhide Uno, CEO of Japanesebroadband giant and Gaga Communications parent Usen Inc, has set up a new independent production and acquisitions company.

Uno has personally invested 100% of the $2.31m (Y250m) start-up capital in the company, dubbed U's Films Inc. The new outfit is completely independent of the Usen group.

Former Gaga CEO Nichiho Marumo will head U's Films, with an initial staff of eight employees transferred from Gaga.

U's Films will begin operations imminently and has set a tentative goal to complete its first production by 2009. The films it produces will be distributed by Gaga as well as other companies outside the Usen group.

The company will also be involved in foreign and domestic acquisitions as well as setting up and joining production consortiums, a company representative told Screendaily. The company plans to join the upcomingAmerican Film Market (Nov 5-12) as its first overseas activity.

The news follows Usen's April announcement that it was considering halting Gaga's production and acquisitions activities, a decision which became official in early July.