With many companies using or associated with the “SoftBank” name, it can be difficult to understand how SoftBank Corp. (TOKYO: 9434) fits into the picture. Here’s a quick primer to clarify SoftBank Corp.’s position.
SoftBank Corp.’s parent company is SoftBank Group Corp. (TOKYO: 9984), an investment company that owns 40.5% of SoftBank Corp.’s shares. Unlike its investment-focused parent company, SoftBank Corp. is an operating company that directly runs telecommunications and IT businesses. SoftBank Corp. has also been independently listed on the Tokyo Stock Exchange since December 2018.
But there’s more to SoftBank Corp. than just telecommunications and IT services. As part of its “Beyond Carrier” growth strategy, the company is expanding into non-telecommunication businesses while further growing its telecommunications business. SoftBank Corp. group companies also offer e-commerce, app messaging, cashless payment, online media services, and more.
At the end of December 2022, SoftBank Corp. had 319 group companies, among them non-telecommunications industry players like PayPay, Yahoo Japan and LINE. These companies, respectively, are Japan leaders in smartphone payments, online services and app-based communications.
In addition to SoftBank Corp.’s 39 million-strong mobile subscriber base, Yahoo! JAPAN services had 86 million online users, PayPay had 54 million smartphone payment users, and LINE’s communication app had 92 million users, according to investor materials released on February 3, 2023. With collaborative links and synergies between their respective services, the combined total of users makes for a compelling number of customer touch points.
Through its stakes in various holding companies, such as Z Holdings, SoftBank Corp. owns stakes in PayPay, Yahoo Japan and LINE and other group companies. ASKUL, a leader in the sales of office-related products, and ZOZO, a major e-commerce fashion retailer, are also major group companies.
As reported by SoftBank News, Yahoo Japan and LINE integrated their operations on March 1, 2021. More recently, on February 2, 2023, Z Holdings announced a merger of its three core companies–Z Holdings, Yahoo Japan and LINE–to expedite decision-making and accelerate the generation of group synergies.
The merger is expected to completed by around the end of FY2023 (the fiscal year ending March 31, 2024), and a transition to a new business structure is scheduled to take place thereafter.
(Posted on February 15, 2023)
by SoftBank News Editors
