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