Yahoo may exit Japan joint venture

Tokyo, Mar 2: Internet giant Yahoo is in talks with Japan's Softbank Corporation to exit their joint venture in the country. Analysts predict that the move is to focus on deciding about its assets in China.

Yahoo and Softbank have 35 per cent and 42 per cent stake respectively in Yahoo Japan. Yahoo's share in the joint venture is estimated to be around $8 billion.

The news has brought contrasting fortunes to both the companies. While Yahoo's shares have risen on the hopes of the deal, on the other hand Softbank's shares have taken a hit on concerns about its ability to finance the deal.

Reuters has reported that a spokesperson for Softbank has denied the news of Yahoo's exit from the joint venture.

However if the deal gets finalised, then it is expected that Yahoo may turn its attention to China. The Internet giant is estimated to have 40 per cent stake in Alibaba group, the parent company of Alibaba.com.

In 2010, Alibaba group was in talks with Yahoo to buy back the company's stake. But the talks failed and it seems Yahoo is not going to offload its stake in the Alibaba group anytime soon.

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