A to Z

18 Nov 2019 By Robyn Mak Follow @mak_robyn

SoftBank and South Korea’s Naver want to merge Yahoo Japan and Line in a complex, multi-step deal. Investors are excited about a $30 bln payments-to-messaging giant, but there are many hurdles to clear. Shareholders and regulators may balk. And even then, a JV structure awaits.

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Japan's SoftBank Corp said in a regulatory filing on Nov. 18 that it plans to merge Yahoo Japan, which last month changed its name to Z Holdings, with messaging app operator Line Corp.

As part of a multi-step deal, SoftBank and South Korea’s Naver will take the Tokyo-listed Line private and form a 50-50 joint venture. The combined entity would eventually control Z Holdings, which in turn will operate Yahoo Japan’s and Line's businesses.

SoftBank Corp owns 44.6% of Yahoo Japan while Naver owns 72.6% of Line. Masayoshi Son’s SoftBank Group owns a 67% voting stake in SoftBank Corp.

Shares of Z Holdings rose 1.4% to 423 yen as of late-morning on Nov. 18. Shares of Line were up 2.2% to 5,150 yen.

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