Japan’s SoftBank Corp plans to merge its internet unit Yahoo Japan with messaging app operator Line Corp to create a $30bn tech giant.
The firms announced that formerly Yahoo Japan, will merge with mobile chat app operator Line, in a bid to boost the customer base for their digital services.
Mobile operator SoftBank Corp, the parent of Z Holdings (ZHD), and South Korea´s Naver, Line´s parent company, agreed the merger of ZHD and Line, SoftBank and Naver said in a joint statement.
Line will be delisted after SoftBank and Naver make a tender offer, with the merger expected to happen in October 2020.
Softbank said in a statement that Yahoo Japan, which last month changed its name to Z Holdings Corp, will merge with Line, owned by South Korea’s Naver Corp, in a deal to be completed in October 2020.
SoftBank also plans to invest in expanding into new business areas and “aims to be a leading company that is a driving force across Japan, Asia and worldwide”.
SoftBank and Line have increasingly competed in fields such as digital payments, while both firms have also been investing in artificial intelligence to improve their services.
Shares in SoftBank Corp were trading down 0.46 percent at 1,501 yen and its parent SoftBank Group was up 0.82 percent at 4,295 yen in early trade.