Japan-South Korea $30 billion tech merger

Japan’s Softbank Corp has revealed its plans to merge its internet unit Yahoo Japan with South Korean messaging app operator Line Corp to create a $30 billion tech giant. Yahoo Japan is currently struggling to compete with its rivals. 

Yahoo Japan changed its name to Z Holdings Corp last month will merge with Line in one of the biggest tech deals for both the countries by October 2020. 

The companies are aiming for a definitive agreement by next month in a transaction that will see SoftBank Corp and Naver form an equally split joint venture partnership that will control Z Holdings, which will, in turn, operate Yahoo Japan and Line.

 

Yahoo Japan has 49 million daily active users across a portfolio of more than 100 mobile phone apps. 

 

The merger deal is the latest example of consolidation in Japan's technology industry. SoftBank this month completed its acquisition of online fashion retailer Zozo Inc, whose founder and ex-Chief Executive Yusaku Maezawa sold down his stake following a series of missteps.

This deal comes at the time of extremely heightened tensions between Japan and South Korea. But this merger is said to be the most significant economic co-operation between the two countries in the last 10 years. 

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