Tag Archives: Japanese
(Reuters) – Japanese map platform developer Dynamic Map Platform announced on Wednesday it plans to acquire Detroit-based map startup Ushr for up to $ 200 million in a bid to widen its geographical footprint in the burgeoning self driving cars market.
Dynamic Map Platform counts Japan’s Toyota Motor, Nissan and Honda among its investors, while Ushr provides 3D mapping data to General Motors.
The move comes as the Japanese car makers seek to challenge Alphabet Inc’s Google and Chinese rivals in the mapping business.
For the acquisition, Dynamic Map Platform said it would raise a combined 22 billion yen ($ 198.9 million) from investors including two existing shareholders – the Japanese state-backed INCJ fund and Mitsubishi Electric.
“Through the combination, we will be able to offer automotive OEMs a comprehensive high-definition mapping solution for the North American and Japanese markets, with the ability to expand globally in the future,” Tsutomu Nakajima, the head of Dynamic Map Platform, said in a statement.
Reporting by Rashmi Ashok in Bengaluru and Makiko Yamazaki in Tokyo; Editing by Stephen Coates and Muralikumar Anantharaman
TOKYO (Reuters) – Flea market app operator Mercari Inc’s shares surged 100 percent in their Tokyo stock market debut on Tuesday, hitting their daily limit high, underscoring strong investor appetite for a rare Japanese unicorn bent on U.S. expansion.
Shares rose as high as 6,000 yen in early afternoon trade, valuing the company at as much as $ 7.4 billion. That made it the most valuable firm on the Tokyo bourse’s Mothers market for startups, ahead of games and social network company Mixi Inc and robotics firm Cyberdyne Inc.
A popular smartphone app that allows people to trade used items online, Mercari has been downloaded 71 million times in Japan where it has 10.5 million active users. It makes money by charging sellers commission, and expects sales to jump 62 percent to 35.8 billion yen ($ 325.93 million) this financial year.
Mercari shares already look expensive, said Masayuki Otani, chief market analyst at Securities Japan. While the app is well known in Japan and still growing, it is likely to face more competition at home, he said, with companies such as Rakuten Inc and Start Today Co Ltd offering used-goods services.
Mercari shares were trading at 5,350 yen at 13:00 local time (0400 GMT).
Its initial public offering, the biggest in Japan this year, raised $ 1.2 billion through the sale of around a third of Mercari’s shares, with the majority bought by overseas investors.
The company is profitable at home but is losing money in the United States, where its expansion plans are being headed by former Facebook Inc executive John Lagerling.
Its U.S. expansion dragged it to a net loss of 4.2 billion yen in the last financial year through June 2017, with a further loss of 3.4 billion in the nine months to March as the company committed funds to improving its brand recognition through advertising.
“We can’t be successful globally without success in the U.S.,” Chief Executive and founder Shintaro Yamada told Reuters in April.
In a country that has many successful giant corporations but lacks a vibrant startup culture, Mercari gained attention as one of Japan’s two unicorns – startups with valuations above $ 1 billion – according to data provider CB Insights. The other is information technology startup Preferred Networks Inc.
Mercari’s growing popularity as Japanese shoppers shed their inhibitions about buying and selling used goods has seen it join the ranks of companies such as Uniqlo parent Fast Retailing Co Ltd that have grown by appealing to consumers’ economizing instincts.
The app has outperformed rivals with its focus on mobile, its ease of use – with users able to trade goods with just a few taps – and by offering anonymity to its privacy conscious Japanese audience.
Reporting by Sam Nussey; Editing by Edwina Gibbs and Christopher Cushing
(Reuters) – Japan’s Fujitsu Ltd said on Friday it was in talks about selling its mobile phone business to investment fund Polaris Capital Group, becoming the latest Japanese electronics maker to withdraw from the sector.
The sale, if realized, would leave just three Japanese electronics makers – Sony Corp, Sharp Corp and Kyocera Corp – in a global market dominated by Apple Inc, Samsung Electronic Co Ltd and cheaper Chinese rivals.
The potential deal calls for Tokyo-based Polaris Capital to take a majority stake in Fujitsu’s mobile phone unit, which is valued at around 40 billion yen to 50 billion yen ($ 365 million to $ 456 million), a source familiar with the situation said.
The size of the stake is still under negotiation, said the person, who asked not to be identified as the discussions were confidential.
An official agreement is expected by the end of the month, the Nikkei newspaper said.
Polaris will aim to list the business in several years, the Yomiuri newspaper reported.
Fujitsu said in a statement that no decision has been made and a representative declined to comment on how large a stake is being negotiated.
Around the year 2000, there were more than 10 major Japanese handset firms producing traditional flip phones, including NEC Corp and Toshiba Corp.
But most have since withdrawn from the business, caught out by the meteoric rise of Apple and Samsung.
Domestic makers failed to gain a global presence by being overly reliant on the lucrative domestic market, which gave them little incentive to change their Japan-specific mobile phone formats and expand overseas.
The rise of low-cost component producers such as Taiwan’s MediaTek Inc also have made it easier for price-competitive Chinese rivals to enter the market.
Fujitsu, whose shares were up 1.0 percent in a flat broader market, has been unloading other non-core businesses as well.
Last year, Lenovo Group agreed to buy a majority stake in Fujitsu’s personal computer unit for up to $ 269 million in a bid to capture a larger share of a market that is battling weak sales as more people switch to mobile devices.
The Nikkei added that retaining the mobile division’s staff and factories will likely be a condition of the deal. Fujitsu, which wants to focus on its core information technology services business, is also expected to continue operating its Arrows brand under Polaris, the source said.
Fujitsu, which spun off its mobile phone operations into a separate company in 2016, had drawn interest from other investment funds such as Britain’s CVC Capital Partners Ltd and Chinese personal computer maker Lenovo Group Ltd, the Nikkei reported last year.
Reporting by Minami Funakoshi and Junko Fujita in Tokyo, writing by Makiko Yamazaki in Tokyo, with additional reporting by Rushil Dutta in Bengaluru; Editing by Shri Navaratnam and Malcolm Foster
Tokyo-based advertising giant Dentsu has acknowledged that it overcharged more than 100 clients after it conducted a month-long investigation into its own financial records.
The probe turned up at total of 633 business transactions that warranted suspicion — worth about $ 2.3 million overall.
In some cases, its agency properties charged fees for ads that were never placed. There were also instances in which a campaign’s performance was exaggerated in order to hike up the price.
It’s not clear which of Dentsu’s clients were affected, but the holding company said in a statement that it had contacted and apologized to each of them. It also vowed to refund the sum in full. Read more…