SoftBank bought Yahoo's $2 billion shares in deal with Altaba

Tinuku - SoftBank Group Corp. bought US$2 billion of Yahoo Japan Corp. shares in a deal with Altaba Inc., previously called Yahoo Inc., to deepen relationships with major Internet companies ahead of the IPO. Transactions with only US$9 million in net investments by SoftBank make it possible to increase ownership without pressing the balance sheet.

Altaba, which also owns about 15 percent of Alibaba Group Holdings Limited, sees the deal to help monetize some of its investments in a joint venture established with SoftBank in 1996. The deal for Yahoo Japan will strengthen ties with Softbank and ease investor concerns.

Tinuku SoftBank bought Yahoo's $2 billion shares in deal with Altaba

Yahoo Japan shares ended 11.4 percent higher in Tokyo on Tuesday after the announcement. SoftBank will buy 221 billion yen (US$2 billion) Yahoo Japan shares from Altaba and Yahoo Japan will then buy back 220 billion shares of SoftBank. Softbank shares in Yahoo Japan will increase to 48.17 percent from 42.95 percent.

"The synergy between SoftBank and Yahoo Japan is consistent with broader group initiatives," said SoftBank CEO Masayoshi Son.