SOFTBANK INCREASES STAKE IN YAHOO JAPAN
Three-way US$2b deal that includes Altaba to boost cooperation between companies
SOFTBANK Group is increasing its stake in Yahoo Japan through a US$2 billion (RM8 billion), three-way deal with United States firm Altaba, to deepen ties with the Internet heavyweight ahead of an initial public offering (IPO) of its telecoms unit.
Under the deal, SoftBank will buy 221 billion yen (RM8 billion) of Yahoo Japan shares from Altaba, formerly Internet giant Yahoo Inc. Yahoo Japan will then buy back 220 billion of stock from SoftBank.
As a result of the transaction SoftBank’s stake in Yahoo Japan will rise to 48.17 per cent from 42.95 per cent with just a US$9 million net investment.
Altaba, Yahoo Japan’s second largest shareholder, will have about 27 per cent and end a joint venture partnership.
SoftBank said yesterday the deal would strengthen cooperation between the company, one of Japan’s big three telecoms firms, and Yahoo Japan, an Internet heavyweight in areas such as news and shopping.
“The synergies between SoftBank and Yahoo Japan are consistent with SoftBank Group’s broader strategic synergy group initiative,” said SoftBank chief executive Masayoshi Son.
The news of the Yahoo Japan deal comes as SoftBank prepares to list its domestic telecoms unit in what could be the largest Japanese IPO in two decades.
Yahoo Japan could use SoftBank’s telecom services to boost demand for online shopping and mobile payments among Japan’s increasingly net-savvy shoppers.
SoftBank, through Yahoo Japan and others, is offering its mobile users an increasingly wide range of top-up services in addition to a basic phone subscription.