SoftBank’s internet business to invest $5 billion to resist overseas tech giants

SoftBank’s internet subsidiary Z Holdings outlined plans on Monday to invest 500 billion yen ($4.7 billion) in technology over five years to resist an onslaught from larger overseas rivals.
The announcement follows the merger of its internet business Yahoo Japan with chat app operator Line, creating a $30 billion domestic internet heavyweight.
Z Holdings said it is targeting sales of 2 trillion yen and operating income of 225 billion yen in three years, as the COVID-19 pandemic boosts demand for online services.
Following a complex transaction, two thirds of Z Holdings shares will be owned by a new holding company, A Holdings, owned 50:50 by SoftBank Corp and South Korea’s Naver Corp.
Z Holdings remains a consolidated subsidiary of SoftBank. Naver was the previous majority owner of Line.