Japan telecom Softbank to reorganize into 2 subsidiaries
TOKYO (AP) — Japanese telecommunications and Internet company SoftBank Group Corp. says it is reorganizing into two new 100 percent-owned subsidiaries, with its global investment business separated from its domestic operations.
The company said Monday that the move is aimed at making its two key business areas "future growth drivers," with the transfer to be completed by December. The move needs shareholders' approval.
The company's stakes in U.S. telecom Sprint Corp. and Chinese e-commerce company Alibaba Group Holding will go under the global operations management subsidiary, while those in domestic operations such as Yahoo Japan will go to the other subsidiary focused on Japan.
The company said the impact on earnings would be minor.
SoftBank is counting on turning around ailing Sprint with good connectivity, competitive prices and better service.