Softbank, Line merger foretells the birth of a new tech powerhouse
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The alliance between the two Japanese companies is estimated to be worth $30 billion and is expected to be concluded by October next year. The merger’s combined revenue could see it totalling $11 billion, easily surpassing its domestic competitor Rakuten.
Tech analysts have lauded the merger, stating that this agreement would give Z Holdings and Line the opportunity to extend their reach towards a larger consumer base and increased negotiating power with its advertisers. Softbank and Naver, which owns Line, will each control 50% of the share in Z holdings.
“We were driven by a sense of crisis about global competition and the pace of change in AI,” said Takeshi Idezawa, co-Chief Executive at Line. “The timing arrived for us to move on to the next phase [with this merger].”
Questions & Answers
Q.What is the estimated value of the merger between Softbank and Line?
What is the estimated value of the merger between Softbank and Line?
The alliance between the two Japanese companies is estimated to be worth $30 billion. It is expected that the merger will be concluded by October next year, forming a significant new entity in the tech market.
Q.What will be the combined revenue of Softbank and Line after the merger?
What will be the combined revenue of Softbank and Line after the merger?
After the merger, the combined revenue of Softbank and Line is expected to total $11 billion. This figure would easily surpass their domestic competitor, Rakuten, in the Japanese market.
Q.Why did Line's co-Chief Executive say they were driven to merge?
Why did Line's co-Chief Executive say they were driven to merge?
Takeshi Idezawa, co-Chief Executive at Line, stated that they were driven by a sense of crisis regarding global competition and the rapid pace of change in AI. He felt the timing was right to move into a new phase.
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