NHNCF - Naver: Line-Yahoo Japan Merger To Create Explosive Synergy
Investment highlights
The merger of Naver (NHNCF) subsidiary Line (LN) and SoftBank (SFTBY) subsidiary Yahoo Japan was officially announced. Naver and Softbank will form a 50:50 venture that would control Z Holdings, which would operate Yahoo Japan and Line (an operating company). Naver and SoftBank plan to launch a tender offer for Line’s remaining shares. Z Holdings will remain a consolidated subsidiary of SoftBank, while Naver will recognize the company as income under the equity method.
Major issues and earnings outlook
The deal signifies the birth of Asia’s