Negotiations between Line and Yahoo are intensifying… Concerns in domestic public opinion about overheating

Line Yahoo search image. [Source: Line Yahoo website],
, ‘Naver and SoftBank are actively negotiating over the adjustment of Line Yahoo’s stake. It is suggested that Naver is likely to sell some of its Line Yahoo stake to secure funding for new business investments. However, concerns have been raised that Naver’s negotiating power may weaken due to the growing public opinion, especially led by civic groups.’,
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, ‘According to the IT industry on the 26th, Naver and SoftBank are discussing the adjustment of Line Yahoo’s stake. It is reported that Naver’s CEO, Seo Yeon Choi, and CFO Nam Sun Kim are overseeing the negotiation. It is said that the discussion on the stake adjustment between the two parties is proceeding with very specific considerations.’,
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, ‘The negotiation between Naver and SoftBank is likely to last for more than two months. According to the Blue House, Line Yahoo has decided not to include the stake sale in the administrative guidance report that it must submit to the Japanese government by July 1st. Even if the two parties readjust Line Yahoo’s stake, it is likely to be implemented at least after July.’,
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, ‘The IT industry and experts view it as likely that Naver will sell a portion of its stake in A Holdings and invest in new businesses. Due to SoftBank’s financial situation, Naver cannot fully purchase A Holdings’ stake, and selling the entire stake would be burdensome for Naver.’,
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, ‘In this case, Naver would secure trillions of won in funding for new businesses such as AI. As of the 24th, Line Yahoo’s market capitalization is 25.39 trillion won. A Holdings holds 64.5% of Line Yahoo’s stake, which is evaluated at around 16.5 trillion won just by considering this amount. Taking into account the control premium, Naver’s stake value is estimated to reach 20 trillion won. Assuming that Naver sells 25% of the stake, it could secure 5 trillion won in funding, a substantial amount that Naver could invest in AI technology development, among others.’,
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, ‘Naver and SoftBank are reportedly engaging in detailed discussions to the extent that concrete proposals are being exchanged. However, as public interest in Line Yahoo in Korea has surged, both parties are feeling the pressure.’,
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, ‘A related person in the IT industry expressed concerns, saying, “While the Japanese government has not officially mentioned stake sales, if our government intervenes excessively, it could be seen as pressure on Line as a messenger service.”‘,
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, ‘In particular, the IT Citizens’ Coalition held a forum on the 24th and demanded SoftBank’s attendance at a parliamentary audit. This demand has been criticized as excessive.’,
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, ‘An IT industry official pointed out, “If the political sector or civic groups summon SoftBank for a parliamentary audit, will Japan just remain silent? If public opinion in Japan deteriorates, Line users themselves may also leave the platform.”‘,
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