SoftBank's Internet Business To Invest $4.7B In Five Years: Reuters

SoftBank Group Corp’s (OTC: SFTBF) (OTC: SFTBY) internet subsidiary Z Holdings intends to invest $4.7 billion (500 billion yen) in technology over five years, primarily focused on artificial intelligence to fend competition from larger rivals like Alphabet Inc’s GOOG GOOGL Google and Amazon.com, Inc AMZN, Reuters reports.

• The investment is preceded by the merger of its internet business Yahoo Japan with chat app operator, Line, becoming a $30 billion internet major.
• Following the merger, two-thirds of Z Holdings will be held A holdings owned 50:50 by SoftBank Corp and South Korea’s Naver Corp.
• The CEOs of Z Holdings and Line, Kentaro Kawabe and Takeshi Idezawa become co-CEOs of A Holdings. 
• Z Holdings aims to generate sales and operating income worth 2 trillion yen and 225 billion yen, respectively, by 2023.
• Price action: SFTBY shares are trading higher by 4.50% at $48.99 on the last check Monday.