Softbank's Yahoo Japan, chat app Line announce October 2020 merger plan

International News
Japanese telco SoftBank Corp announced on Monday plans to merge its internet unit Yahoo Japan with messaging app operator Line Corp, as it scoops up struggling internet companies to bulk up against rivals such as Rakuten.
SoftBank said in a statement that Yahoo Japan, which last month changed its name to Z Holdings, will merge with Line, owned by South Korea's Naver Corp, in a deal to be completed by October 2020.
The companies aim for a definitive agreement by next month in a transaction that will see SoftBank Corp and Naver form a 50:50 venture that will control Z Holdings, which will in turn operate Line and Yahoo.
SoftBank Corp is a unit of investment behemoth SoftBank Group Corp.
SoftBank Corp and Naver, which owns 73 per cent of money-losing Line, plan to launch a tender offer for Line's remaining shares at 5,200 yen per share, a 13.4 per cent premium to the share price before news of the merger broke. Line's shares were up 2.6 per cent at 5,180 yen in early trading on Monday.

Z Holdings will continue to be a consolidated subsidiary of SoftBank...READ MORE

SoftBank's Yahoo Japan confirms merger talks with messaging app Line

International News
SoftBank's Yahoo Japan, one of Japan's top internet firms, confirmed it is in talks to merge with Line Corp, a $27 billion union that would bring the messaging app operator under the SoftBank umbrella in a major tech shake-up.
Yahoo Japan, which last month changed its name to Z Holdings , said on Thursday discussions were underway with Line but nothing had been decided. SoftBank Corp, which owns almost half of Z Holdings, also acknowledged the talks.
Shares in Z Holdings, which had a stock market value of about $17 billion at Wednesday's close, jumped 14.8 per cent.
Shares in Line, which is valued at about $10 billion, were untraded with a glut of buy orders.
Sources told Reuters the previous day a deal was likely by month-end and could see SoftBank Corp and Line's parent Naver Corp form a 50/50 venture that would control Z Holdings, which would in turn operate Line and Yahoo.
Line said in a statement it was true it is considering ways to improve its corporate value but nothing had been decided.
A deal would bring together the operators of two of Japan's biggest QR code payment apps as the country belatedly shifts to cashless payments. SoftBank's PayPay recently hit 19 million users through aggressive marketing, while Line Pay can tap the 82 million Japanese users of the Line app.
Line, which last year sold a majority stake in its mobile unit to SoftBank, has reported three consecutive quarters of operating losses as the company tries to jump-start growth.

Z Holdings made a move in September to take control of fashion e-tailer Zozo Inc in a $3.7 billion deal, as it bulks up against rivals such as Amazon.com. ...READ MORE

Yahoo Japan aims to buy control of online fashion retailer Zozo for $3.7 bn

International News

Yahoo Japan Corp said on Thursday it aims to buy 50.1% in online fashion retailer Zozo Inc for about 400 billion yen ($3.70 billion), joining forces to better compete with rivals such as Amazon.com Inc and Rakuten Inc.
Zozo founder Yusaku Maezawa will sell around 30% of the retailer in a tender offer to Yahoo Japan, leaving him with a stake of about 6%, and step down as CEO of the company, which has struggled following a series of botched initiatives by the flamboyant billionaire.
Yahoo Japan's offer price of 2,620 yen per share is a premium of around 21% compared to Wednesday's undisturbed closing price. Zozo shares jumped as much 19% in early Tokyo trading with Yahoo Japan shares up around 4%.
Zozo has a market value of around 680 billion yen, according to Refinitiv data. The deal would give Maezawa a windfall or around $2.3 billion.
"I will entrust Zozo to a new president and take my own path," Maezawa said in a Twitter post.
The entrepreneur has generated attention for his flashy lifestyle, including paying $110 million for a Jean-Michel Basquiat painting and signing up as the first private passenger to be taken around the moon by Elon Musk's SpaceX.
However, Maezawa has recently sold part of his extensive art collection, saying he has no money.

 His company, which runs the Zozotown online mall, has been struggling. In the last financial year it booked its first annual drop in earnings due to a failed experiment with bespoke tailoring and clashes with fashion brands over discounting.Yahoo Japan is a consolidated subsidiary of telco SoftBank Corp, which in turn is controlled by tech conglomerate SoftBank Group Corp.