A SoftBank subsidiary operating Yahoo Japan online services gained shareholders’ approval Wednesday, March 11, on its merger with messaging app provider Line aimed at creating Japan’s largest online service company by October to better compete with US and Chinese tech giants.
“We will get buried in a crowded market if we continue to go it alone” as US and Chinese IT firms including Amazon and Alibaba Group Holding enjoy economies of scale, Kentaro Kawabe, president of SoftBank’s subsidiary Z Holdings told shareholders at their meeting in Tokyo. “The sooner we merge the better.”
Z Holdings, which operates Yahoo Japan’s search engine and e-commerce services, and Line are set to complete merger procedures through a stock swap.
Under their deal, SoftBank, the mobile communication unit of SoftBank Group, and Line parent Naver Corp. of South Korea will set up an equally held joint company, which will hold a 65% stake in Z Holdings. Naver owns 73% of Line.
Full Content: Kyodo News
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