Today, SoftBank Corp. (TYO: 9984) stated it’s ready to spend $4 billion to increase its stake in Yahoo Japan Corp and make it its subsidiary. This action would help increase Softbank’s profit by 24% this year.
The Japanese conglomerate company plans to buy 456.5 billion yen ($4.2 billion) worth of new shares to be issued by Yahoo Japan, raising SoftBank Corp’s stake from 12% to 45%.
In December, SoftBank Corp listed in Japan’s largest-ever IPO. The company estimates its operating profit will jump to 890 billion yen in the present financial year through March 2020.
Today, SoftBank Corp’s parent SoftBank Group Corp stated it will sell its 36% stake in Yahoo Japan back to the Tokyo-based internet corporation.
This will reinforce the relationship between SoftBank Corp, Japan’s third-biggest telco, and Yahoo Japan, an internet giant in various areas including news and shopping.