Press Releases 2025
Notice Concerning Absorption-type Splits between SoftBank Corp. and IDC Frontier Inc.,
a Wholly Owned Subsidiary
(Simplified Absorption-type Split)
December 25, 2025
SoftBank Corp.
SoftBank Corp. (hereinafter the "Company") hereby announces that at the meeting of the Board of Directors held on December 25, 2025, the Company resolved to implement absorption-type splits (collectively, the "Splits"), effective from April 1, 2026.
The Splits consist of (i) an absorption-type split in which the Company will succeed the data center business of IDC Frontier Inc. (hereinafter "IDCF"), a wholly owned subsidiary of the Company, as well as customer contracts related to its cloud and network services (hereinafter "Split (i)"), and (ii) an absorption-type split in which IDCF will succeed the Company's cloud services "White Cloud ASPIRE" and "White Cloud Desktop Service Standard" (hereinafter "Split (ii)").
Note that since the Splits are simplified absorption-type splits involving a wholly owned subsidiary, certain disclosure items and details have been omitted.
1. Purpose of the Splits
In our three-year Medium-term Management Plan announced in May 2023, the Company set forth a Long-term Vision of becoming "a company that provides Next-generation Social Infrastructure essential for development of a digital society." This vision aims to build infrastructure that can accommodate the rapid increase in data processing and electricity demand driven by advances in AI, with the goal of supporting future digital services. The Splits are intended to further strengthen the Company's internal capabilities for building Next-generation Social Infrastructure toward the realization of this Long-term Vision.
With respect to the data center business, its importance as core infrastructure supporting an AI-driven society is increasing. Accordingly, pursuant to the Split (i), this business will be succeeded by the Company and enhanced and advanced as a next-generation business.
Meanwhile, regarding the cloud business, the relevant services will be transferred to IDCF through the Split (ii). By optimizing the allocation of business functions and clarifying the division of roles, we will strengthen the competitiveness of the overall business.
The Splits enable the Company to improve development capabilities by consolidating engineering resources, establish an integrated development and operational structure for AI data centers through the unification of processes, and reinforce our cloud services. We believe these initiatives will contribute to building a sustainable foundation for growth for the Group.
2. Outline of the Splits
(1) Schedule of the Splits
| (1) Date of the resolution of the Board of Directors | December 25, 2025 |
|---|---|
| (2) Date of signing of the Splits agreement | December 25, 2025 (planned) |
| (3) Effective date of the Splits | April 1, 2026 (planned) |
- [Note]
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- *As the Splits fall under a simplified absorption-type split as prescribed in Article 796, Paragraph 2 of the Companies Act in relation to the Company, and a short-form split as prescribed in Article 784, Paragraph 1 of the same act in relation to IDCF, the Splits agreement will be approved without convening General Meetings of Shareholders of either company.
- *
(2) Method of the Splits
The Split (i) will be an absorption-type split with the Company as the successor company and IDCF as the splitting company. Split (ii) will be an absorption-type split with the Company as the splitting company and IDCF as the successor company.
(3) Details of allotment related to the Splits
As IDCF is a wholly owned subsidiary of the Company, no shares or cash will be allotted as a result of the Splits.
(4) Handling of stock acquisition rights and bonds with stock acquisition rights upon the Splits
No applicable items.
(5) Increase or decrease of common stock due to the Splits
There will be no increase or decrease in the Company's common stock.
(6) Rights and obligations to be succeeded by the successor company (the Company) due to the Splits
The Company will assume the assets, liabilities, and other rights and obligations such as contractual positions related to the Business prescribed in the absorption-type company split contract on the effective date of the Splits.
(7) Prospect of fulfillment of obligations due to the Splits
The Company has determined that there will be no problems with respect to the prospects for the fulfillment of obligations that the Company must bear.
3. Overview of the companies involved in the Splits
| Successor company in Split (i) and splitting company in Split (ii) | Splitting company in Split (i) and successor company in Split (ii) | |||
|---|---|---|---|---|
| (1) Company name | SoftBank Corp. | IDC Frontier Inc. | ||
| (2) Address | 1-7-1 Kaigan, Minato-ku, Tokyo | 1-7-1 Kaigan, Minato-ku, Tokyo | ||
| (3) Name and title of representative | Junichi Miyakawa, President & CEO | Katsuhisa Suzuki, President & CEO | ||
| (4) Description of business | Provision of mobile communications services, sale of mobile devices, provision of fixed-line telecommunications and ISP services | Data center business and cloud business | ||
| (5) Common stock | JPY 239,692 million (As of September 30, 2025) |
JPY 100 million (As of September 30, 2025) |
||
| (6) Established | December 9, 1986 | February 2, 2009 | ||
| (7) Number of shares issued | 47,908,265,700 shares (common shares) 30,000,000 shares (Series 1 Bond-Type Class Shares) 25,000,000 shares (Series 2 Bond-Type Class Shares) (As of September 30, 2025) |
30,000 shares (As of September 30, 2025) |
||
| (8) Fiscal year end | March 31 | March 31 | ||
| (9) Major shareholders and shareholding ratios (Note) | SoftBank Group Japan Corporation 40.07% The Master Trust Bank of Japan, Ltd. (Trust Account) 10.08% Custody Bank of Japan, Ltd. (Trust Account) 3.43% STATE STREET BANK WEST CLIENT-TREATY 505234 1.39% SMBC Nikko Securities Inc. 1.35% (As of September 30, 2025) |
SoftBank Corp. 100.00% (As of September 30, 2025) |
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| (10) Financial position and results of operations for the most recent fiscal year | Fiscal year ended March 31, 2025 (Consolidated: IFRS) |
Fiscal year ended March 31, 2025 (Standalone: Japanese GAAP) |
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| Equity attributable to owners of the Company | JPY 2,743,630 million | Net assets | JPY 8,261 million | |
| Total assets | JPY 16,102,195 million | Total assets | JPY 34,760 million | |
| Equity per share attributable to owners of the Company | JPY 50.96 | Net assets per share | JPY 275,371.90 | |
| Revenue | JPY 6,544,349 million | Revenue | JPY 27,181 million | |
| Operating income | JPY 989,016 million | Operating income | JPY 3,933 million | |
| Profit before income taxes | JPY 880,057 million | Ordinary income | JPY 3,975 million | |
| Net income attributable to owners of the Company | JPY 526,133 million | Net income | JPY 2,527 million | |
| Basic earnings per share | JPY 10.99 | Net income per share | JPY 84,245.31 | |
- [Note]
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- *"Major shareholders and shareholding ratios" of the Company are indicated based on the "Information Concerning Major Shareholders" stated in the Semiannual Securities Report for the 40th Fiscal Year filed by the Company on November 11, 2025.
- *
4. Overview of the business to be succeeded due to the Split (i)
(1) Nature of the business to be succeeded due to the Split (i)
The entire business operated by IDCF related to its data center operations, including a series of activities such as sales, product planning, facility maintenance, customer management, and billing, as well as customer contracts related to cloud and network services ancillary to the data center business
(2) Results of operations of the department to be succeeded due to the Split (i) (Fiscal year ended March 31, 2025)
Revenue: JPY 16,552 million (excluding sales to the Company)
(3) Assets and liabilities to be split (as of September 30, 2025)
| Assets | Liabilities | ||
|---|---|---|---|
| Item | Value | Item | Value |
| Current assets | JPY 1,648 million | Current liabilities | JPY 8,419 million |
| Non-current assets | JPY 9,055 million | Non-current liabilities | JPY 2,284 million |
| Total assets | JPY 10,703 million | Total liabilities | JPY 10,703 million |
- [Note]
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- *The asset and liability items and respective monetary values to be succeeded are calculated based on the balance sheet statement as of September 30, 2025. Therefore, the actual value to be succeeded will reflect fluctuations in the above values until the business day prior to the effective date of the Splits.
- *
5. Overview of the business to be split due to the Split (ii)
(1) Nature of the business to be split due to the Split (ii)
Operations related to the development and operation of the Company's cloud services "White Cloud ASPIRE" and "White Cloud Desktop Service Standard"
(2) Results of operations of the department to be succeeded due to the Split (ii) (Fiscal year ended March 31, 2025)
Revenue: JPY 3,619 million
(3) Assets and liabilities to be split (as of September 30, 2025)
| Assets | Liabilities | ||
|---|---|---|---|
| Item | Value | Item | Value |
| Current assets | JPY 704 million | Current liabilities | JPY 2,226 million |
| Non-current assets | JPY 1,522 million | Non-current liabilities | Not applicable |
| Total assets | JPY 2,226 million | Total liabilities | JPY 2,226 million |
- [Note]
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- *The asset and liability items and respective monetary values to be succeeded are calculated based on the balance sheet statement as of September 30, 2025. Therefore, the actual value to be succeeded will reflect fluctuations in the above values until the business day prior to the effective date of the Splits.
- *
6. Status after the Splits
There will be no changes in the company name, address, name and title of representative, description of business, common stock, or fiscal year end of the Company.
7. Forecasts
Since these are splits between the Company and a wholly owned subsidiary of the Company, the effect of the Splits on the Company's consolidated results of operations is immaterial.
(Reference) Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026 (announced on May 8, 2025) and Consolidated Financial Results for the Previous Fiscal Year
| Revenue | Operating income | Net income attributable to owners of the Company | Basic earnings per share | |
|---|---|---|---|---|
| Forecasts for the consolidated results for the fiscal year ending March 31, 2026 | JPY 6,700,000 million | JPY 1,000,000 million | JPY 540,000 million | JPY 11.22 |
| Consolidated operating results for the fiscal year ended March 31, 2025 | JPY 6,544,349 million | JPY 989,016 million | JPY 526,133 million | JPY 10.99 |
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