Softbank to Make Yahoo Japan Subsidiary
Tokyo, May 8 (Jiji Press)--Japanese telecommunications carrier Softbank Corp. <9434> said Wednesday it will make Yahoo Japan Corp. <4689> a consolidated subsidiary.
The share acquisition will help Softbank log record consolidated sales and operating profit in the current year ending in March 2020. At present, Yahoo Japan is under the wing of Softbank Group Corp. <9984>, the carrier's parent.
Next month, the telecommunications arm will raise its equity stake in Yahoo Japan to 45 pct from 12 pct in terms of voting rights by acquiring 456.5 billion yen in new shares that will be issued by Yahoo Japan.
The acquisition is aimed at maximizing the competitive edge of Softbank through enhanced collaboration with Yahoo Japan's operations other than telecommunications, Softbank President Ken Miyauchi said.
Softbank expects sluggish growth in its mainline communications services for the current year due to planned cuts in mobile phone rates.
[Copyright The Jiji Press, Ltd.]