Japan's Softbank to buy rival eAccess for $2.3 bn

Oct 01, 2012
Softbank president Masayoshi Son (right) introduces the world's first smartphone featuring a nuclear radiation detector, in Tokyo in May. The Japanese mobile phone operator is to acquire one of its smaller rivals, fourth-ranked eAccess Ltd, for $2.3 bn, the companies say.

Japanese mobile phone operator Softbank is to acquire one of its smaller rivals, fourth-ranked eAccess Ltd, for $2.3 billion, the companies said Monday.

will make eAccess a wholly owned subsidiary through a stock swap and hopes to use the company's available bandwidth to cope with sharply rising data traffic as Japan's huge rapidly adopts smartphones.

Tokyo-based Softbank, one of Asia's biggest Internet conglomerates, said the swap ratio values eAccess at 52,000 yen ($667) per share, making the company worth about 180 billion yen.

Softbank and eAccess will share base stations, saving Softbank new , one of the largest expenses for mobile operators.

Softbank was once the only Japanese mobile operator to offer the wildly popular iPhone, but now has a rival after KDDI Corp., the country's second-largest carrier, also struck a deal to carry Apple's handsets.

The buyout is expected to further intensify competition among industry leader NTT DoCoMo Inc., KDDI Corp. and Softbank.

Softbank and eAccess had a combined 34.3 million subscribers as of the end of August, the Nikkei daily said, still short of KDDI Corp. with 35.9 million subscribers.

Market leader DoCoMo has 60.6 million subscribers.

The deal is expected to be completed in February next year.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

Japan's KDDI to sell new iPhone in Japan

Oct 05, 2011

Apple confirmed Wednesday that Japan's second largest mobile carrier KDDI would sell its latest iPhone in the country, ending rival Softbank's exclusive hold on the popular smartphone.

Battle to sell the iPhone heats up in Japan

Oct 07, 2011

Japan's third-largest mobile carrier Softbank on Friday unveiled a lower monthly fee for the new iPhone than bigger rival KDDI, as competition for smartphone users heats up among the nation's mobile firms. ...

Japan's Softbank unloads Yahoo! shares

Aug 26, 2011

Japanese telecom giant Softbank on Friday said it was selling the bulk of its holdings in US Internet firm Yahoo! to Citibank in repayment of a 2004 loan.

Softbank reports robust earnings on smartphones

May 09, 2011

(AP) -- Softbank Corp., the only Japanese mobile carrier offering the hit iPhone, said annual profit nearly doubled despite suffering damage from the March 11 quake and tsunami that battered northeastern ...

Vodafone stays in Japan with Softbank

May 18, 2006

Having washed its hands of one of the world's most competitive telecommunications markets, Britain's Vodafone is prepared to take the plunge into Japan once again, but this time with a partner.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.