Yahoo Japan and Line are aiming for a final merger agreement by next month, according to reports.
Yahoo Japan is operated by SoftBank Corp., which is owned by Z Holdings Corp., and Naver Corp. of South Korea owns a majority stake in Line.
The merger will result in an online giant providing numerous services including retail services, advertising and other mobile services, such as messaging. Their combined sales would be the largest among Japanese online business operators.
The integration will be carried out equally, according to the companies, but the price is expected to be decided in Dec. After a deal is completed, Line will get delisted and the new company will seek to answer to Japan’s social needs.
“Social and industrial conditions surrounding us are changing drastically and daily on a global basis,” it said, adding that Japan needs to catch up, and coming together might help.
“Particularly in the Internet market, overseas companies, especially those based in the United States and China, are overwhelmingly dominant.”
