Announcement of Strategic Partnership for Internet Business in China
SOFTBANK CORP. announces that the company has reached a basic agreement to form a strategic partnership with Alibaba.com Corporation (affiliated of the company, head office: Hong Kong, China, representative: Jack Ma, hereinafter “Alibaba”) and Yahoo! Inc. (head office: California, U.S.A., representative: Jerry Yang, “Yahoo”), for the promotion of Internet businesses in the Chinese market. Reorganization caused by the alliance, the Company has decided to sell its shares held in Tao Bao Holding Limited (consolidated subsidiary of the company, head office: Hong Kong, China; representative: Jack Ma “Tao Bao”).
1. Basic agreement
SOFTBANK CORP.; Tao Bao, the no. 1 auction site operator in China; Alibaba, the no. 1 B2B marketplace operator in China; and Yahoo, operator of portal and search sites, will form a long-term strategic partnership for the joint development of a solid operation base in the rapidly expanding Internet market in China, by making the utmost use of the high recognition of Alibaba and the strong brand power of Yahoo.
2. Effects on consolidated financial result
In the 2nd quarter for the fiscal year ending March 31, 2006, the company will sell off a part of its shares held in Tao Bao for US$360 million and record the gain on sale of investment securities as special income, the amount of which is yet to be fixed at the present time because of the potential impacts that may arise out of a certain series of transactions and as Tao Bao is a consolidated subsidiary of the company.
The amount of special income will be disclosed when the amount of the gain on sale of investment securities are finally fixed.
3. Outline of Alibaba.com Corporation
| (1) Major line of business | Operation of the B2B marketplace in China |
|---|---|
| (2) Established | June 1999 |
| (3) Head office | Hong Kong, China |
| (4) Representative | Jack Ma |
| (5) Capital stock | Approximately US$23,000 |
4. Outline of Yahoo! Inc.
| (1) Major line of business | Internet service provider |
|---|---|
| (2) Established | March 1995 |
| (3) Head office | California, U.S.A. |
| (4) Representative | Jerry Yang |
| (5) Capital stock | Approximately US$1,416,000 |
5. Outline of Tao Bao Holding Limited
| (1) Major line of business | Internet auction business in China |
|---|---|
| (2) Established | June 2003 |
| (3) Head office | Hong Kong, China |
| (4) Representative | Jack Ma |
| (5) Capital stock | Approximately US$206,000 |
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