SoftBank Corp.'s new memorandum of understanding, announced on Wednesday, is set to pave the way for share issuance which will bring it ownership of 51% in Line Corp.'s mobile telecommunications subsidiary. The investment deal, declared a strategic alliance, is centered on the partner's virtual network operator. Line Mobile Corp. will be jointly run after the transaction is completed "around March," the companies said.
The social media operator launched the operations of the unit in September 2016, offering free capacity for platforms including Line, Twitter, Facebook, Instagram and its own music service. It claimed the business achieved growth of nearly 130% on an annual scale in the past quarter despite a general slowdown in the segment's expansion.
TechCrunch said it learned the two sides are still negotiating the size of the financing endeavor, while that books put the current valuation of Line Mobile at $15 million. The firm has a mobile joint venture with Telenor in Thailand. Line earlier said it will introduce financial services through its messaging application, including cryptocurrency trading.
