Line Yahoo: Capital Movement for its Separation from Naver Difficult in the Short Term

Line Yahoo(LY), the operator of Japan’s popular Line messenger application, reported to Japanese authorities that movement of capital for its separation from Naver is difficult in the short term although it will continue discussions on the matter. 

LY recently decided to expedite the process of separating from Naver and complete the separation by March 2026, earlier than originally planned, following successive administrative guidance from the Japanese Ministry of Internal Affairs and Communications over a data leak.

LY explained the decision in a report it submitted to the ministry on Monday regarding the administrative guidance. 

LY said that it asked SoftBank and Naver to discuss the issue of reexamining the capital structure of its largest shareholder A Holdings, a joint venture established by Naver and SoftBank with 50 percent investment each. 

LY said that Naver and SoftBank reached and shared an understanding that capital movement will be difficult in the short term, adding LY plans to continue efforts to make progress in the discussions as the two sides are both cooperative.

SoftBank earlier said that it is in talks with Naver over control of LY.