How to Read Japan’s Big Internet Merger

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Heard on the Street: The combination of Yahoo Japan’s online shopping and Line’s instant messaging will depend on careful management of different corporate cultures

The merger of two internet giants in Japan looks good on paper. The question is how well they can make it work.

Instant messaging app Line and news and shopping site Yahoo Japan, which is indirectly controlled by SoftBank, are in discussions to combine, the companies said Thursday. Both make most of their money in Japan. Line has around half of its users in three other markets—Taiwan, Thailand and Indonesia—but these only generate around a quarter of revenue. Yahoo Japan is separate from the U.S. Yahoo website, owned by Verizon...

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