On Monday, SoftBank Group Corp.’s telecom arm finalized the merger of its Japanese internet business with messaging service owner Line Corporation.
It aims to join forces with these two entities as per reports.
Accordingly, the company is set to fold Line Pay into PayPay in April 2022.
This is possible only if it manages to secure and adhere to all the relevant regulatory approvals.
SoftBank Corp., its Yahoo Japan unit and India’s Paytm are funding the company.
Moreover, SoftBank Corp. and Line’s parent Naver Corp. each gave acquired half of a newly created A Holdings Corp.
This newly created company accounts for about 65.3 per cent control of publicly traded Z Holdings Corp.
It has also taken SoftBank’s Yahoo Japan and Line’s operations under its umbrella.
However, the company intended to close the deal by October but pandemic-induced market disruptions delayed it further.
Currently, PayPay has garnered 36 million users in Japan whereas Line Pay has about 39 million users.
Further, the collaboration will enable PayPay to have access to over 80 million Japanese users on Line’s messaging service.
Masayoshi Son is the SoftBank founder who backs some of the world’s largest startups.
He initiated the deal to create a never seen before Japanese tech giant.
The ultimate goal is to compete with global rivals like Google, Amazon and Tencent Holdings Ltd.
In fact, the combined company plans to spend 100 billion yen ($939 million) annually on development of AI-powered products.
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