SoftBank to create $40.8b tech giant with Yahoo Japan, Line Corp merger

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TOKYO (REUTERS) - Japan's SoftBank Corp plans to merge its internet unit Yahoo Japan with messaging app operator Line Corp to create a US$30 billion (S$40.8 billion) tech giant, as it bags struggling internet companies to bulk up against rivals like Rakuten Inc.. Read more at straitstimes.com.

TOKYO - Japan's SoftBank Corp plans to merge its internet unit Yahoo Japan with messaging app operator Line Corp to create a US$30 billion tech giant, as it bags struggling internet companies to bulk up against rivals like Rakuten Inc.

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 Yahoo Japan and Line. Line has been looking for growth through expansion into areas such as QR code payments with Line Pay, but has been squeezed because of its limited funds and heavy-spending peers including SoftBank, which has a rival service called PayPay.

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