SoftBank's Yahoo Japan in merger talks with Line, shares jump

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SoftBank's Yahoo Japan is in talks to merge with messaging app operator Line Corp to create a US$27 billion tech giant and help the Japanese ...

TOKYO: SoftBank's Yahoo Japan is in talks to merge with messaging app operator Line Corp to create a US$27 billion tech giant and help the Japanese conglomerate expand e-commerce and payments services.

Sources told Reuters on Wednesday 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. 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.

SoftBank is making a major push into online retailing, launching PayPay Mall, as it tries to grow revenues outside its core telecoms business.

 

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