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