The alliance between the two Japanese companies is estimated to be worth $30 billion and is expected to be concluded by October next year. The merger’s combined revenue could see it totaling $11 billion, easily surpassing its domestic competitor Rakuten.
Tech analysts have lauded the merger, stating that this agreement would give Z Holdings and Line the opportunity to extend their reach towards a larger consumer base and increased negotiating power with its advertisers. Softbank and Naver, which owns Line, will each control 50% of the share in Z holdings.
“We were driven by a sense of crisis about global competition and the pace of change in AI,” said Takeshi Idezawa, co-Chief Executive at Line. “The timing arrived for us to move on to the next phase [with this merger].”