Yahoo Japan Drops $3.2 Billion Plan to Buy eAccess From SoftBank

Advertisement
By Reuters | Updated: 19 May 2014 16:20 IST
Yahoo Japan Corp has dropped its plan to buy mobile network operator eAccess Ltd from SoftBank Corp in a 324 billion yen ($3.2 billion) deal that was part of a reorganisation of SoftBank group assets.

Yahoo Japan, the country's biggest Internet portal and 42.6 percent owned by SoftBank, will proceed with a planned low-cost mobile Internet service using the eAccess mobile network, SoftBank and Yahoo Japan said on Monday.

eAccess will also go ahead with a scheduled June 1 merger with wireless provider Willcom Inc, another SoftBank unit.

The sale of eAccess was set to give SoftBank additional cash as it pursues an aggressive overseas acquisition strategy. That could include a bid for No.4 U.S. wireless carrier T-Mobile US Inc to add to its purchase of No.3 Sprint Corp last year.

Advertisement

Since the eAccess deal was announced on March 27, however, Japan's third-largest mobile carrier has prepared a 300 billion yen bond issue targeting Japanese retail investors. It also stands to reap a potential windfall from a New York listing of Chinese e-commerce company Alibaba group, highlighting its financial flexibility as it seeks acquisitions.

Advertisement

(Also see: Yahoo Japan to buy eAccess from Softbank for $3.2 billion)

In discussions that followed the March announcement, it was decided that Yahoo Japan would instead offer services via the eAccess network while leaving eAccess as a separate company to own and operate the network infrastructure, the companies said.

Advertisement

Yahoo Japan President Manabu Miyasaka had said after the March announcement that his company would need control of its own handsets and network to achieve its goal of 10 million additional mobile users.

But analysts questioned the need for the Internet company to take over operation of a wireless network from a member of the same group. Its shares subsequently tumbled, losing 25 percent of their value since the announcement while Tokyo's benchmark Nikkei average is down 4 percent.

Advertisement

SoftBank, which aims to become the world's leading mobile Internet company, holds a 99.68 percent stake in eAccess but only 33.29 percent of the voting rights due to regulatory restrictions. It nevertheless exercises effective operating control since the remaining voting rights are split among several holders.

© Thomson Reuters 2014

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Internet, SoftBank, Yahoo, Yahoo Japan, eAccess
Advertisement

Related Stories

Popular Mobile Brands
  1. DeepSeek-OCR Could Change How AI Reads Text From Images
  2. OnePlus 15 Battery Capacity, Charging Speed Teased Days Ahead of Launch
  3. iQOO Neo 11 Key Specifications Tipped Ahead of Launch in China
  4. These Are the 5 Biggest OxygenOS 16 Features You Should Know About
  5. BSNL Samman Plan For Senior Citizens Announced at This Price
  6. OnePlus 15 India Launch Teased; Key Features Revealed Ahead of Launch
  7. Redmi K90 Pro Max Key Features Revealed Ahead of Launch on October 23
  8. Samsung Galaxy XR Headset Launched With Hand Tracking at This Price
  9. Realme GT 8, Realme GT 8 Pro With Ricoh GR Optics Launched: See Price
  10. Your Smartwatch Could Soon Know Your Location to the Centimetre
  1. Redmi K90 Design, Key Features Revealed; Confirmed to Debut With 7,100mAh Battery
  2. Poco Pad M1 Spotted on TDRA Website, Could Debut Globally as Rebranded Redmi Pad 2 Pro
  3. Samsung AI Glasses Confirmed to Launch in Collaboration with Warby Parker, Gentle Monster
  4. iQOO Neo 11 Confirmed to Come With 2K Display and 7,500mAh Battery; Colour Options Tipped
  5. MacBook Pro 14-inch (2025) and iPad Pro With M5 Chip Now Available in India: Prices and Other Details Here
  6. Samsung Galaxy XR Headset Launched With Hand Tracking, Snapdragon XR2+ Gen 2 SoC: Price, Specifications
  7. Samsung Galaxy XR Headset Launching Today: Know Price, Features, and Specifications
  8. Smartwatch Breakthrough Brings GPS Accuracy Down to a Few Centimetres
  9. SpaceX Launches 10,000th Starlink Satellite, Sets New Annual Record
  10. Scientists Discover New Seismic Clue to Predict Mount Etna Eruptions
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.