October 30, 2019
ZOZO, Inc. expresses their affirmative opinion regarding the Tender Offer for its shares by Yahoo Japan Corporation and decides on a capital and business alliance
~Entering a new stage of growth as a fashion e-commerce platform, which is based on a strong alliance relationship, creating synergies centered on attracting customers, payment settlements and opening a store in “PayPay Mall”~
Based on a resolution of the Board of Directors, ZOZO, Inc. (Headquarters: Chiba City, Chiba Prefecture, Representative Director, President and CEO: Kotaro Sawada), which operates fashion e-commerce site “ZOZOTOWN”, expressed its opinion in support as a company regarding the Tender Offer for the Company’s shares by Yahoo Japan Corporation (Headquarters: Chiyoda City, Tokyo, President and Representative Director: Kentaro Kawabe) (hereinafter referred to as the “Tender Offer”). Furthermore, the Company decided to execute a capital and business alliance agreement (the capital and business alliance based on this agreement is referred to as the “Business Alliance”) with Yahoo Corporation Japan.
*For details of the Tender Offer and Business Alliance, please refer to the timely disclosure, “Notice of the Expression of Opinion regarding the planned commencement of the Tender Offer for the Shares of the Company by Yahoo Japan Corporation and the closure of the Capital and Business Alliance Agreement” announced by the Company today.
Yahoo Japan Corporation has the largest number of users in the country through media and commerce businesses, and this Business Alliance is expected to have a large effect in terms of attracting customers to the Company. In addition, since Yahoo Japan Corporation is scheduled to open “PayPay Mall” in Fall 2019, where we can expect cooperation synergies the Company believes that expressing its opinion in support for the Tender Offer and the implementation of this Business Alliance will lead to an increase in the corporate value of the Company over the medium to long term.
Specific business alliances include the opening of a store in PayPay Mall by the Company, referring customers from Yahoo Japan Corporation media to ZOZOTOWN (including the ZOZOTOWN store opening in PayPay Mall) and introducing PayPay, a smartphone payment service to ZOZOTOWN. We have agreed to discuss a future cooperation regarding the introduction of accompanying services and sales cooperation for company participation in PayPay Mall.
We are confident that the strengthening of the core functions as a fashion e-commerce platform (attracting customers and payment settlements) through this alliance as described above, will bring significant benefits to apparel brands who have their stores in ZOZOTOWN as well as users who purchase clothes on ZOZOTOWN.
Through this Alliance, users of Yahoo Japan Corporation and users who use PayPay via Yahoo Japan Corporation can be guided to ZOZOTOWN, and the number of purchasers and members of our service can be expected to increase exponentially. In particular, user referrals from Yahoo Japan Corporation, which has a high utilization rate especially among the middle-aged and elderly demographic, is expected to have a significant complementary effect for ZOZOTOWN, which has been centered around the customer base of younger users. In addition, the opening of ZOZOTOWN in PayPay Mall will further expand our customer base, and it is expected that the number of products we handle will increase as a result of PayPay Mall tenants opening new stores in ZOZOTOWN. In addition, the introduction of PayPay as a payment method on ZOZOTOWN is expected to improve the payment convenience for ZOZOTOWN users.
Moreover, whether the Tender Offer realizes or not, the Company will remain listed in the First Section of the Tokyo Stock Exchange as an independent listed company.
As well as continuing to operate existing businesses such as ZOZOTOWN, we strive to realize our corporate philosophy, “Make the World a better place, bring smiles to the World. ~Be unique. Be equal.~”
As the Company and Yahoo Japan Corporate become part of the same group through the Tender Offer and the Business Alliance, we will build a strong alliance based on a stable capital relationship, aiming for further growth/development and the enhancement of corporate value for both companies.
Contact PR from here