Naver Accelerates Integration of Line and Yahoo... Acquires Stake in Line Plus (Comprehensive)

[Asia Economy Reporter Seungjin Lee] Naver is accelerating the management integration of its Japanese subsidiaries LINE and Yahoo Japan.

On the 23rd, Naver announced that it acquired one share of its subsidiary LINE's "LINE Split Preparation," a company preparing for LINE's split, for approximately 768.3 billion KRW.

On the same day, Naver also announced that LINE Split Preparation will acquire 4,942,670 shares of LINE Plus, Naver's Korean mobile service affiliate, for 445.4 billion KRW.

As a result, LINE now holds 100% (130,301 shares) of LINE Split Preparation, and LINE Split Preparation holds 100% (4,942,670 shares) of LINE Plus. The scheduled date for the stock acquisition is the 28th.

Additionally, LINE announced that it will merge with another business preparation company, "Shiodome Z Holdings." The purpose of the merger is to achieve management integration between LINE and Z Holdings, which operates Yahoo Japan.

Naver explained, "This is a procedure following the management integration process of LINE and Yahoo Japan," adding, "It involves organizing the shareholding relationships of LINE's subsidiaries and transferring and succeeding companies preparing for the split."

Japan's "national messenger" LINE and the largest portal Yahoo decided to integrate management last November. In August this year, Naver and SoftBank announced the launch of a joint venture (JV) called "A Holdings" with a 50-50 shareholding.

The management integration of LINE and Yahoo is expected to be completed around March next year. After integration, Z Holdings will be placed under a company jointly invested by SoftBank and Naver, the parent companies of both firms, with Yahoo and LINE becoming subsidiaries.

Naver founder and Global Investment Officer (GIO) Lee Hae-jin will serve as chairman and co-CEO of A Holdings' board, while SoftBank CEO Ken Miyauchi will serve as co-CEO.

On this day, Naver announced, "The shareholders' meeting date for the merger schedule is planned for February 2021."

This content was produced with the assistance of AI translation services.