Yahoo Japan Corp (4689.T) decided to retract its originally planned procurement of eAccess Ltd from SoftBank Corp (9984.T). A significant move that was initially estimated to be worth 324 billion yen ($3.2 billion), this acquisition was expected to bring about a transformative shift in SoftBank Group’s portfolio.
Despite this, Yahoo Japan, a digital powerhouse in Japan that holds a 42.6 percent stake from SoftBank, maintains its determination towards unveiling a budget-friendly mobile internet service. The technology giant plans to utilize the infrastructure of eAccess’s mobile network to achieve this goal, a plan publicly endorsed by both SoftBank and Yahoo Japan.
Meanwhile, eAccess progresses with its planned consolidation with Willcom Inc, another subsidiary of SoftBank. The merger is projected to conclude by June 1.
SoftBank’s original plan to divest from eAccess appeared to be a strategy to uplift its financial state, possibly enhancing its global investment plans. These include the potential acquisition of T-Mobile US Inc (TMUS.N), the fourth-largest wireless service provider in the U.S, following a fruitful purchase of Sprint Corp (S.N).
Following the public announcement of the eAccess deal on March 27, Japan’s third-largest mobile service provider rolled out a 300 billion yen bond offer targeting Japanese retail investors. This move forms part of a comprehensive strategy designed to trigger economic growth via the New York listing of e-commerce giant Alibaba Group, showcasing their financial strength amid new acquisitions.
Post-announcement, Yahoo Japan resolved to provide services utilizing the eAccess network. This assures eAccess of its continued business autonomy and control of its network infrastructure—a strategy equally celebrated by both corporations.
Manabu Miyasaka, the CEO of Yahoo Japan, previously stated that acquiring an additional ten million mobile users required the company to retain distinct management over its network and devices.
Contrariwise, Yahoo Japan’s proposal to acquire a wireless network from another large company was met with disbelief by market watchdogs. This impacted Yahoo Japan’s stock value significantly, causing a 25% drop, while the benchmark Nikkei average .N225 in Tokyo saw a 4% decrease.
With the aspiration of becoming a leading mobile internet giant, SoftBank still possesses the majority holdings in eAccess with a 99.68% stake. However, due to certain regulations, it only has 33.29% voting rights. Notwithstanding the divergence of the remaining voting rights among different stakeholders, SoftBank still maintains operational control.
This article was updated in 2025 for clarity, relevance, and content accuracy.
Updated in 2025 to align with recent developments.
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