Yahoo Japan has called off a plan to spend $3.2 billion to buy the eAccess mobile network from Softbank.
Revealed in March,as part of a move to merge eAccess with Willcom, a company also owned by SoftBank that offers wireless services. SoftBank actually owns around 42 percent of Yahoo Japan, while the US-based Yahoo owns around 35 percent of it.
On Monday, eAccess explained in a statement why the $3.2 billion transaction was canceled:
"Yahoo has come to the conclusion that instead of converting eAccess in to its consolidated subsidiary and building infrastructure by itself, it would be better for Yahoo and eAccess to collaborate by capitalizing on the strengths of each company, whereby Yahoo would be responsible for services and eAccess will be responsible for infrastructure."
Analysts also were puzzled why Yahoo Japan would buy a mobile network from Softbank when both companies are part of the same group, Reuters said Monday. That question has caused shares of Yahoo Japan to sink by 25 percent since the deal was announced.
Yahoo's decision not to buy eAccess won't affect its overarching goal. eAccess and Willcom still plan to merge, effective June 1. Yahoo Japan will then work with the new company, dubbed Ymobile, to roll out its own mobile services under a new "Ymobile" brand.