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Yahoo Japan drops takeover of eAccess
2014-05-19 10:04:00| Telecompaper Headlines
(Telecompaper) Yahoo Japan has abandoned plans to acquire the mobile broadband provider eAccess. The company announced in March an agreement with Softbank to buy eAccess, but subsequent negotiations on the deal led to a new agreement. Yahoo Japan said that it came to the conclusion that rather than converting eAccess to a consolidated subsidiary and building an infrastructure on its own, it would be better to develop the business by employing the strengths of each company. As a result, they will set up a new venture called Ymobile, with Yahoo responsible for services and eAccess for infrastructure. eAccess still plans to merge with sister company Willcom from 01 June. They will be renamed Ymobile and work with Yahoo Japan develop the concept of "Delivering the Joy and Convenience of the Internet to Every Hand", first proposed by Yahoo in March. The two companies will jointly offer new services developed under the brand name Y!mobile, which in future will also be offered by parent company SoftBank Mobile. Due to the acquisition no longer going ahead, Yahoo lowered its outlook for the fiscal first half to September to exclude eAccess results. It now expects revenues of JPY 211.9 billion and operating profit of JPY 93.4 billion for the six months.
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Category:Telecommunications