Yahoo Inc is in talks with Yahoo Japan for the withdrawal of its stake in the Japanese company, according to a latest report from the Wall Street Journal.
Yahoo Japan was formed by Yahoo Inc in partnership with Japanese mobile and Internet-service company Softbank Corp. Currently Softbank owns 42% of the Japanese joint venture, while Yahoo owns nearly 35% shares.
“Yahoo Inc. is still trying to finalize the mechanism [for selling its stake] and we are cooperating with them,” Akira Kajikawa, Yahoo Japan’s chief financial officer, said at a news conference on Wednesday.
Softbank stated that it isn’t interested in acquiring additional Yahoo Japan shares.
Mr. Kajikawa further added that it was unclear when an agreement might be reached.
“It’s a very complex deal. Yahoo Japan wants to ensure that it will have control over who is the new owner,” he said, adding that the company has been looking to sell the stake for about a year, following pressure from regulators.
Yahoo’s is restructuring its leadership team. The U.S. company hired former PayPal President Scott Thompson as Chief Executive this month. Last week, Yahoo Inc. co-founder Jerry Yang resigned as the director of Yahoo Japan and stepped down from the Yahoo board.
Scott Thompson stated that reviving the flagging display advertising business was the company’s highest priority. “Yahoo would invest the majority of its resources into its core businesses, while remaining open to potential acquisitions and looking for revenue streams that look different from what it’s doing today,” he added.