US internet company Yahoo is seeking to exit its 35% stake in Yahoo Japan, according to various reports.
Reuters wrote that Yahoo may consider an asset swap with Japanese telco Softbank, which already owns a 42% stake in Yahoo Japan, because it would be…
US internet company Yahoo is seeking to exit its 35% stake in Yahoo Japan, according to various reports.
Reuters wrote that Yahoo may consider an asset swap with Japanese telco Softbank, which already owns a 42% stake in Yahoo Japan, because it would be a tax-efficient option. Softbank would acquire a stake in Yahoo in return for the US company’s stake in Yahoo Japan.
Yahoo has hired UBS for the sale while Softbank is being advised by the Raine Group, according to Reuters. The talks are reported to still be at an early stage.
But the Japanese company was quoted saying it has no intention to acquire the Yahoo Japan’s shares.
A deal could allow Yahoo, which is facing increasing competition from Google and Facebook outside of Japan, to cash in about US$7bn-US$8bn.
It would also enable it to focus its attention on China, according to reports. Yahoo already has a stake in Chinese e-commerce company Alibaba Group, as does Softbank. But it remains unknown whether Yahoo would sell its stake in Alibaba as well or not.
In mid-February, Softbank acquired a 35% stake in China-based Synacast Corporation, also known as PPLive, a provider of online TV services. TelecomFinance understands that the investment size was US$250m.
The Japanese company recently lifted its full-year operating profit forecast by 20%, because of the popularity of the iPhone and iPad.
