Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo  >  Z Holdings Corporation    4689   JP3933800009

Z HOLDINGS CORPORATION

(4689)
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Yahoo Japan's Deal Aims to Lift Retail

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/13/2019 | 02:48am EDT

By Megumi Fujikawa TOKYO -- A billionaire entrepreneur's midlife crisis helped SoftBank Group Corp. affiliate Yahoo Japan Corp. strike the biggest deal in its history and lift its e-commerce business against rivals such as Amazon.com Inc.

Once a corporate cousin of the U.S. Yahoo website, Yahoo Japan is now a separate company under SoftBank's control and increasingly focused on commerce rather than its original core business of selling advertising against content such as news and sports.

That shift will accelerate with Yahoo Japan's $3.7 billion plan to take a 50.1% stake in Japanese online fashion retailer Zozo Inc. Zozo founder Yusaku Maezawa, who is selling most of his 36.8% stake and resigned as chief executive on Thursday, said he wanted to leave the company he built and focus on personal ambitions including traveling into space -- twice.

With Zozo in its stable, Yahoo Japan hopes to attract younger fashion-conscious consumers in competition with Amazon, whose Japan unit had sales of $13.8 billion last year, and homegrown rival Rakuten Inc.

"We are aiming to become No. 1 in domestic sales volume" in the next five years or so, said Yahoo Japan Chief Executive Kentaro Kawabe at a news conference. "Some say Rakuten and Amazon are too strong, but with this capital alliance with Zozo, we are quite close to reaching that goal."

Mr. Maezawa said he decided recently that at 43, his life was at a turning point. Mr. Maezawa signed up last year to fly around the moon with Elon Musk's SpaceX vehicle in 2023, and he disclosed at the news conference that he plans an additional moon trip. He didn't give details but said he would use some of his newly available leisure time to study Russian.

In a surprise appearance, SoftBank's founder and chief executive, Masayoshi Son, took the stage in a Zozo brand T-shirt that matched Mr. Maezawa's. Mr. Son said he was approached by Mr. Maezawa and asked for advice about how he could start his second life.

Mr. Son took credit for getting Mr. Maezawa to start talking to Yahoo Japan about a sale, but Mr. Maezawa said later his friend got it wrong because the two sides had already been discussing cooperation.

Compared with general merchandisers such as Amazon, Zozotown, started in 2004, is a more popular fashion platform for trend-conscious consumers. Most of its customers are women who tend to be in their 20s and 30s.

"For Zozo to grow further, Zozo had to reach out to a wider range of customers, not only fashion lovers. Yahoo is facing challenges in the areas of fashion and young consumers," said Mr. Maezawa. "This is an alliance like a marriage" in which each company can fill the other's flaws, he said, while acknowledging that as a bachelor with a well-chronicled social life he might not be an expert on marriage.

Keiichi Yoneshima, an analyst at Credit Suisse, said the deal would help both companies become more efficient in logistics, payments and advertising. Yahoo Japan shares closed up 2.3%.

The total Japanese e-commerce market expanded to nearly Yen18 trillion ($167 billion) in 2018, more than doubling in eight years, according to the Ministry of Economy, Trade and Industry.

Yahoo Japan was born in 1996 as a joint venture of SoftBank and what was then Yahoo Corp. of the U.S. A fund called Altaba Inc. inherited Yahoo Corp.'s stake in Yahoo Japan when the U.S. site was sold to Verizon Communications Inc., and last year Altaba completed the sale of its entire Yahoo Japan stake.

The U.S. Yahoo site has struggled to keep users with the rise of social media sites. Yahoo Japan, while facing similar challenges, still is the dominant news portal in Japan. A Reuters Institute survey of news consumption habits this year found that 51% of Japanese respondents had used Yahoo Japan in the past week, easily beating other news sites.

This fall, Yahoo Japan plans to start a premium online shopping mall where only shops that pass the company's strict requirements can open a store. The website is called "PayPay Mall," named after a smartphone payment company jointly operated by Yahoo and SoftBank.

"We will continue to look for an opportunity to buy an e-commerce company if there are any shining ones like Zozo," said Mr. Kawabe, the Yahoo Japan CEO.

 

Stocks mentioned in the article
ChangeLast1st jan.
ALTABA INC. 0.00% 19.63 Delayed Quote.-100.00%
CREDIT SUISSE GROUP AG -0.66% 11.975 Delayed Quote.7.50%
RAKUTEN, INC. -0.39% 1009 End-of-day quote.41.51%
SOFTBANK GROUP CORP. -0.81% 4156 End-of-day quote.-40.67%
VERIZON COMMUNICATIONS -0.55% 59.6 Delayed Quote.6.60%
Z HOLDINGS CORPORATION 0.63% 321 End-of-day quote.20.68%
ZOZO, INC. -0.24% 2504 End-of-day quote.26.72%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on Z HOLDINGS CORPORATION
09/13Yahoo Japan's Deal Aims to Lift Retail
DJ
09/13ASIA MARKETS: Asian Markets Gain As Trade Tensions Ease Further
DJ
09/12Tech Up on Hopes for Trade-Negotiations Progress -- Tech Roundup
DJ
09/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
09/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
09/12NEWS HIGHLIGHTS : Top Company News of the Day
DJ
09/12UPDATE6 : Yahoo Japan to buy fashion retailer Zozo for 400 bil. yen
AQ
09/12UPDATE5 : Yahoo Japan to buy fashion retailer Zozo for 400 bil. yen
AQ
09/12UPDATE4 : Yahoo Japan to buy fashion retailer Zozo for 400 bil. yen
AQ
09/12YAHOO JAPAN : making tender offer for retailer Zozo at $3.7B
AQ
More news
Financials (JPY)
Sales 2020 1 009 B
EBIT 2020 147 B
Net income 2020 85 111 M
Finance 2020 277 B
Yield 2020 2,77%
P/E ratio 2020 18,5x
P/E ratio 2021 17,2x
EV / Sales2020 1,25x
EV / Sales2021 1,13x
Capitalization 1 538 B
Technical analysis trends Z HOLDINGS CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 17
Average target price 422,53  JPY
Last Close Price 321,00  JPY
Spread / Highest target 74,5%
Spread / Average Target 31,6%
Spread / Lowest Target -9,66%
EPS Revisions
Managers
NameTitle
Kentaro Kawabe President, CEO & Representative Director
Manabu Miyasaka Chairman
Ryosuke Sakaue Chief Financial Officer
Chiaki Fujimon Chief Technology Officer
Masayoshi Son Director
Sector and Competitors
1st jan.Capitalization (M$)
Z HOLDINGS CORPORATION20.68%14 172
ALPHABET16.34%842 881
BAIDU-34.01%36 478
NAVER CORP--.--%19 261
YANDEX9.65%9 805
SOGOU INC.-1.33%2 027