SoftBank’s internet business Yahoo Japan has completed its merger with Japanese chat app Line, the affiliate firm of South Korean internet portal Naver.

Photo credit: Line

The joint venture is valued at US$30 billion and aims to take on rivals such as Rakuten. The merger deal was announced in November 2019.

Following the completion of the deal, Z Holdings – the rebranded name of Yahoo Japan – will take on the operations of the merged entity.

A Holdings, which was created by SoftBank and Naver, controls 65.3% of publicly traded Z Holdings shares. Both companies each own an equal stake in A Holdings.

With 23,000 employees and over 200 services under its belt, Z Holding has a total of over 300 million users and 15 million corporate clients, said the firm in a statement.

While Z Holdings will continue focusing on its web portal, advertising, and messenger offerings, it has also designated commerce, local vertical, fintech, and public services as its four new focus areas.

The firm will invest 500 billion Japanese yen (US$4.6 billion) to develop its data and artificial intelligence capabilities and apply the technologies to these areas. It also plans to expand its pool of AI engineers, both domestically and overseas, by 5,000 people over the next five years.

By fiscal year 2023, it aims to achieve 2 trillion Japanese yen (US$18.6 billion) in revenue and an operating income of 225 billion Japanese yen (US$2.1 billion).

Meanwhile, Line Pay and SoftBank’s payments app PayPay will be combined in April 2022, which would allow the two mobile payment app operators to ramp up their market share.

Currency converted from Japanese yen to US dollar: US$1 = 107.08 yen

https://www.techinasia.com/softbank-navers-affiliates-complete-merger-launches-30b-joint-venture/amp