Yahoo Japan merge with Line to make the biggest Internet in Japan

SoftBank has backed Z Holdings owner of Yahoo Japan and will finally get to merge with messaging app line. An all-share deal with South Korea’s Naver, 75 per cent owner of Line, will create a mostly Japanese internet Behemoth worth $30bn (¥3.3.Tn). The deal with create a joint venture between two companie to own Line equally. Naver would also receive 65 per cent of Yahoo Japan, controlling it with SoftBank’s Z Holdings.

The merger would allow 50m users from Yahoo Japan and 80m users from Line in Japan and their combined revenues of $10.6bn last year would make it Japan’s biggest internet company surpassing the local ecommerce giant Rakuten.

Yahoo Japan has long offered a diverse range of services but has lagged behind many of its competitors.

Line will be taken private through a tender offer of $48 per share, a 33 per cent premium to Line’s share price before news of merger.

The deal will subject to local antirust scrutiny.