This Day On The Street
Continue to site
ADVERTISEMENT
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

Yahoo Japan Buys EAccess From SoftBank

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.

Must Read: Treasury to Trim Ally Financial Stake

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 - Get Report), 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
YHOO $38.61 0.00%
AAPL $126.00 0.00%
FB $87.55 0.00%
GOOG $522.86 0.00%
TSLA $279.72 0.00%

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs