Yahoo Japan Cancels Their $3.2 Bln Acquisition over eAccess.

0

Yahoo Japan Cancels Their $3.2 Bln Acquisition over eAccess.

Yahoo Japan has recently decided plan to purchase eAceess, from the company’s largest shareholder, SoftBank, for a total of 324 billion yen (US$3.2 billion).

The planned acquisition was supposedly apart of Yahoo Japan’s expansion strategy for its business within the wireless data and voice sectors. This deal would have also reorganized the asset of Softbank group to form a new Internet service for mobile devices.

Statement.

Softbank had stated that after the March 27th announcement of Yahoo Japan’s acquisition of eAccess, discussion between the two companies have led to the decision that the companies did not need to merge their businesses. Yahoo Japan stated that ti would be far more effective for the two companies to operate much independently.

Industry analysts were skeptical of the price for this deal upon its initial announcement, as the original agreement had Yahoo Japan paying 80 percent more to acquire eAccess than the cost of 180 yen that SoftBank paid to acquire the assets in 2012. Furthermore, Masayoshi Son has control over all three companies.

“It looks like Yahoo Japan is finally standing up to its top shareholder and has refused to take on the minority stake in eAccess from SoftBank,” Amir Anvarzadeh, BGC Partners Inc. manager of Japanese equity sales in Singapore, said in an e-mail.

Plans.

Softbank, which owns up to 42.6 percent of Yahoo Japan, stated that eAccess will continue with its plans to merge with SoftBank’s wireless service unit, Willcom. Yahoo Japan, on the other hand, stated that it will continue to push for the “Y!mobile” services with SoftBank but will leave eAccess as a separate company as its develops wireless network infrastructure.

Softbank stated that this deal’s cancellation will have a barely any impact on the company. SoftBank would have booked a net gain of 55.7 billion yen with this deal for the financial year if the deal had actually gone through. The acquisition was supposed to close down around June, to coincide with with eAccess merger with Willcom.

Read Next:OffGamers Partners Up With Adyens to Provides Localized Payment Worldwide.

Like What Your Reading? Subscribe For A Free Monthly News And Event Update in Asia! Please Share!

Share.

About Author

Kevin C is passionate for tech world wide. He was apart of Qbox media and currently is apart of a UX firm based in Hong Kong.

Asia Tech Hub @Copyright 2014