Softbank Agrees To Sell eAccess To Yahoo Japan

Softbank Agrees To Sell eAccess To Yahoo Japan

Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) agreed to sell eAccess Ltd (TYO:9427) to Yahoo Japan Corporation (TYO:4689), the largest web portal in Japan for ¥324 billion.

Transaction details

Under the terms of the agreement, Yahoo Japan Corporation (TYO:4689) will purchase a 99.68% stake or 33.29% of the voting shares of eAccess Ltd (TYO:9427) after its merger with Willcom on June 1. The three companies are subsidiaries of Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) controlled by Japanese billionaire Masayoshi Son.

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According to the parent company, Yahoo Japan Corporation (TYO:4689) will launch Y!mobile, a new business that will primarily offer internet service and voice service as a supplementary offering.

According to Softbank Corp (OTCMKTS:SFTBF) (TYO:9984), the transaction will provide synergies with its current services including growth of membership and revenue increase in its Yahoo! Premium service. The parent company expects growth in the corporate value of Yahoo Japan Group as it promotes increased usage of the internet through smartphones. It will also contribute to the growth of internet advertising, e-commerce, and digital content markets.

Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) expects to gain approximately ¥55.7 billion from the transaction for the fiscal year ending March 31, 2015.

‘Window dressing’

Commenting on the deal, Amir Anvarzadeh, a manager of Japanese equity sales at BGC Partners Inc in Singapore told Bloomberg, “It’s mainly window dressing. They’ve kept it under the SoftBank umbrella.”

Softbank U.S. Expansion

Last year, Softbank Corp (OTCMKTS:SFTBF) (TYO:9984), the third largest wireless carrier in Japan purchased Sprint Corporation (NYSE:S) for $22 billion as part of its initiative to expand its business operations in the United States.

The Japanese company is also contemplating on the possibility of acquiring T-Mobile US Inc (NYSE:TMUS), the fourth largest wireless carrier in the United States. Its aim is to strengthen Sprint Corporation (NYSE:S)’s competitiveness against AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).

Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) has investments in over 1,000 companies. It recently acquired a 37% stake in Alibaba Group Holding Limited, a Chinese e-commerce company, which has a valuation of $200 billion and started the process of its initial public offering (IPO) in the United States.

Son founded Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) as a wholesaler of packaged computer software in 1981. The company’s business transformed due to acquisitions including a unit of Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) in Japan.

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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