*** SoftBank’s Yahoo Japan to merge with Line app operator | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

SoftBank’s Yahoo Japan to merge with Line app operator

Japan’s Softbank said yesterday it will merge its Z Holdings unit -- formerly called Yahoo Japan -- with popular chat app Line in a multibillion-dollar deal it hopes will help it better compete against big guns in the digital services sector such as Amazon.

The tie-up will create a tech giant worth $30 billion, with Softbank and South Korea’s Naver Corp, which owns a majority stake in Line, to offer shareholders 5,200 yen a share. Once the deal expected in October next year is agreed, the new company will delist with each side holding a 50 percent stake.

SoftBank holds about 44 percent of Z Holdings while Naver owns 73 percent of Line. The two expect to spend 170 billion yen ($1.56 billion) each on the bid.