This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Yahoo Japan Buys EAccess From SoftBank

Stock quotes in this article: YHOO

NEW YORK (The Deal) -- Japanese telecom and Internet company SoftBank on Thursday continued to consolidate its Japanese businesses as it focuses on international growth.

Yahoo Japan Corp., which is 43% owned by SoftBank, agreed to buy eAccess Ltd. from SoftBank for 324 billion yen ($3.2 billion). The deal is the second step in SoftBank's consolidation. EAccess is already working to swallow Willcom Inc., another Japanese business of SoftBank. Yahoo Japan will wait until that deal is complete before integrating eAccess.

All the companies are based in Tokyo.

Having started as a small software distributor in 1981, SoftBank has grown into a global phone company under the tutelage of billionaire CEO Masayoshi Son.

The company is trying to offset the effects of its saturated home market and last summer paid $21.6 billion for a majority stake in Sprint Corp., the U.S. No. 3 wireless provider.

SoftBank said it would book a gain of 55.7 billion yen on the sale of eAccess. It bought the company in 2012 for 180 billion yen. Just over a year ago, it sold 66.7% of the broadband provider's voting rights to a consortium of 11 companies that included Samsung Electronics Co.

In Thursday's deal, Yahoo Japan will buy 99.7% of eAccess' shares but only get the one-third of the company's voting rights that remained with SoftBank.

Yahoo Japan, which is 35% held by Yahoo! (YHOO), will be able to offer customers broadband access while widening its Web hosting business with the eAccess acquisition. According to documents related to the eAccess deal with Willcom, eAccess has 4.4 million subscribers to its broadband access services while Willcom has 5.7 million hosting customers.

The company said it hopes to roll out a special Y!Mobile cellular-based broadband service that will focus on Internet access but also offer voice services.

"As we promote increased usage of the Internet via smartphones, we will contribute to the growth of the Internet advertising, e-commerce and digital content markets, which will result in growth in the corporate value of the Yahoo Japan group," the company said.

For the year ending March 31, a combined eAccess and Willcom is expected to have 390 billion yen in revenue, resulting in 10.1 billion yen in net profit.

Yahoo Japan turned to Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. for financial advice and Nishimura & Asahi LPC for counsel.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs