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They turned to the creation of a $30 billion tech giant Yahoo and Japan’s Line Corp. (a) fusion

FILE PHOTO: The logo of SoftBank Group, Corp, is displayed at SoftBank World in 2017 conference to be held in Tokyo, Japan, on July 20, 2017. (REUTERS photo/Issei Kato/File Photo

TOKYO (Reuters) – the japanese SoftBank Corp (9434.(T) plans to merge with the internet unit with Yahoo Japan at the messaging app operator Line Corp. (3938.(T) to create a $30 billion to the tech giant, and it-bags, the struggle of internet companies in order to bulk up against competitors such as Rakuten Inc. (4755.(T).

The telco in a statement said the Yahoo Japan-which last month changed its name to Z’s Holdings Corp (4689.(T), along the Line, owned by South Korea’s Naver Corp (035420.SO, in a deal that will be completed in October 2020.

The companies are aiming to have a final agreement next month, a transaction that will see SoftBank Corp and Naver to form a 50:50 venture, which will be in control of his Holdings, which, in turn, serve as Yahoo Japan, and on the Line.

SoftBank Corp and Naver, which owns 73 percent of the money-losing Line is, there is a plan to launch a tender offer for the Line’s remaining shares of 5,200 euro each, a 13.4% premium to the shares ‘ price on the news of the merger broke up. The Line’s shares rose by 2.6% to 5,180 yen in early Tokyo trading on Monday.

The line is looking to grow by expanding into areas such as a QR code) payments in a Line to Pay, but has repressed because of the limited resources and the heavy expenditure of their peers, including SoftBank, which has a rival service called PayPay.

The merger deal is the latest example of consolidation in Japan’s technology industry. They turned this month completed its acquisition of online fashion retailer Zozo, Inc., 3092.(T), which is the founder and former Chief Executive of Yusaku Maezawa, sold its stake following a series of missteps.

At a time of heightened political tension between Japan and the republic of Korea, the merger of the two countries in the economic partnership of the past decade, Jaewoong Lee, a Korean serial entrepreneur and co-founder of Naver and rival Daum have written on his Facebook page late on Sunday.

Z Holdings, which will remain a consolidated subsidiary of SoftBank Corp., which is a unit of investment conglomerate SoftBank Group Corp (9984.(T). Z’s Holdings and in means of a press conference at 0800 GMT.

Report by Sam Nussey; Additional reporting by Ju-min Park in Seoul; Editing by Muralikumar Anantharaman Cushing and Christopher

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