SoftBank Group is elevating its share in Yahoo Japan via a 3-way, $2 Billion agreement with US company Altaba. This comes with the intention to deepen relations with the Internet behemoth prior to an IPO of its telecoms division. Below the agreement, SoftBank will purchase $2 billion (almost 221 Billion Yen) of Yahoo Japan stakes from Altaba, previously internet behemoth Yahoo Inc. Yahoo Japan will then purchase back 220 Billion of share from SoftBank.
Due to this transaction, SoftBank’s share in Yahoo Japan will increase to 48.17% from 42.95% with only a net investment worth $9 Million. Yahoo Japan’s 2nd biggest shareholder, Altaba, will have almost 27% and a joint venture deal. SoftBank claimed to the media this week that the agreement will reinforce cooperation between the firm, one of Japan’s big 3 telecoms companies, and Yahoo Japan, an internet behemoth in regions such as shopping and news.
“The relations between Yahoo Japan and SoftBank are consistent with wider tactical synergy group initiative of SoftBank Group,” Masayoshi Son, SoftBank Chief Executive, claimed to the media in an interview. Vision Fund, the biggest private equity fund in the world with a value of more than $93 Billion as of May 2017, and SoftBank have been taking small shares in tech firms all over the world that Son thinks will come to rule over their respective areas.
On a related note, SoftBank this week claimed that its mobile phone unit has presented a preliminary application to list its stakes on the Tokyo Stock Exchange in what is expected to be the biggest IPO (initial public offering) in Japan this year. The loan on SoftBank Corp. is anticipated to exceed that of Mercari Inc. (the flea market app operator), which was capitalized at 676.6 Billion Yen (almost $6.1 Billion) upon its entrance in June 2018.