Yahoo Japan Cancels $3.2 Billion Plan to Buy Japanese Mobile Network
Published on: 19th May 2014
Yahoo Japan has walked away from a previously announced USD3.2 billion deal to buy the local mobile network, eAccess from SoftBank.
In a statement, eAccess said that following discussions between Yahoo and SoftBank Yahoo has decided in a meeting held today to cancel the Transaction.
As Softbank owns around 42.5 percent of Yahoo Japan, it was seen less a sale than a shuffling of assets by Softbank. As such the cancellation of the deal is less significant than the $3.2 billion headline figure suggests.
Yahoo has come to the conclusion that, it would be better for Yahoo and eAccess to collaborate by capitalizing on the strengths of each company, whereby Yahoo would be responsible for services and eAccess will be responsible for infrastructure.
A previously announced merger of eAccess and Willcom is still going ahead, than then following that, Yahoo plans to cooperate with the new company and roll out new services that incorporate Yahoo's services under the new brand name, "Y!mobile".
eAccess has around 4.5 million customers, and Willcom is estimated to have somewhere above 5 million customers.
They said that details of the new services are still to be decided upon.