Domination in technology is a top priority for many countries. This is especially true for Japan as technology innovations play an important role in the country. It is reported that SoftBank Group Corp., the largest Japanese company, intends to improve its position in the industry. Softbank announced an agreement to merge its Yahoo Japan subsidiary with Line, a dominant messaging app company. This can lead to the formation of a comprehensive technology giant able to compete against most of the world's biggest tech companies. It is estimated that the deal will cost $30 billion. According to SoftBank representatives, the tie-up will bring together leading Japanese suppliers of QR code services. As a result, the company will gain access to 164 million Line users and their data in Japan and Southeast Asia. Masayoshi Son, the founder of SoftBank Corp., came up with this idea after the company lost a fortune on investments in a coworking company WeWork. Supposedly, the parties will come to an agreement next month. SoftBank Corp. said that Yahoo Japan (presently Z Holdings Corp.) plans to complete the merger with Line in October next year. The company belongs to the South Korean holding corporation Naver. SoftBank and Naver will have equal control over the new enterprise. Both companies plan to launch a tender offer for a part of Line’s shares held by Naver. They cost 5.2 thousand yen per share. Moreover, after the announcement about a new tech giant, Line shares increased in price by 2.2% to 5.15 thousand yen. Z Holdings shares rose by 1.2%, while Naver shares gained 2.9%. According to experts, the merge of the most popular messenger in Japan with one of the largest online retailers can give a boost to the country’s technology industry. Japanese representatives in the industry feel the pressure of the crisis and some detachment from the Western countries and the US. They focus on the rapid growth of technology giants in these countries, as well as in China, and do not want to be among outsiders in the market.
