Seeking Alpha

Yahoo Japan drops $3.2B bid to buy eAccess from SoftBank

  • Yahoo Japan (YAHOF) has abandoned its plan to acquire Japanese mobile/broadband services firm eAccess from SoftBank (SFTBF) for $3.2B (previous). Instead, the company will launch a low-cost mobile broadband service using eAccess' network.
  • The eAccess deal was part of an effort by SoftBank, which owns 42.6% of Yahoo Japan, to restructure its assets and raise funds for M&A (including a possible Sprint/T-Mobile merger). But the company is already raising ¥300B in debt, and stands to reap a post-IPO windfall from its 34.4% stake in Alibaba.
  • Yahoo (YHOO +0.6%) owns 35% of Yahoo Japan, whose shares fell 2.8% in Tokyo overnight. At current levels, Yahoo's stake is worth $8.1B. Yahoo Japan's sales fell 14% Y/Y in Q4 to $1.03B, and its net income 11% to $304M.
From other sites
Comments (2)
  • Vegas_215E
    , contributor
    Comments (12) | Send Message
     
    Son needs to abandon $TMUS merger for real! The real growth in that sector is in south & central America. Son ought to be in bed with Carlos Slim and buy the stake in $AMX that $T is now selling.
    19 May 2014, 12:16 PM Reply Like
  • Amir Anvarzadeh
    , contributor
    Comments (58) | Send Message
     
    Too late for that as Sprint is in trouble in its current size. Even if he does get his hands on TMUS he'll end up ith over $110bn of interest bearing debt. Softy needs every penny it can get its hands on from Alibaba IPO and its shares will continue to head south
    19 May 2014, 12:26 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs