December 12, 2007
Business and Capital Partnership with Yahoo! JAPAN
- GMO Internet Inc.
Tokyo - December 12, 2007 --The GMO Internet Board of Directors meeting convened today agreed to form a partnership with Yahoo! Japan Corporation with the objective of aggressively pursuing the small and medium business Internet advertising market. This decision follows today’s third party allocation to Yahoo! Japan Corporation.
１．Background to the Partnership
The Internet advertising market is growing yearly, in 2005 it was worth 280.8 billion yen (154.8% YOY increase) and in 2006 it had grown to 363.0 billion yen (129.3% YOY increase). In 2011 it is expected to be valued at 755.8 billion yen, more than twice the 2006 value in five years from now. (Dentsu Communication Institute, April 16, 2007)
GMO Internet and Yahoo! JAPAN believe that within this expanding market lies a significant potential market in the as yet undeveloped SME market. The two companies have joined together to create a new synergy and build corporate value by using the strengths of each company to grow this new market.
２．Details of the Business Partnership
The two companies already have a strong relationship in the Internet media and Internet advertising fields. They established JWord, Inc. in a joint investment and GMO Internet already has a business partnership with the Yahoo! JAPAN wholly-owned subsidiary Overture K.K.
The new partnership will further strengthen ties between the two companies, and is planned to include jointly planning and development of products and expansion of sales channels in the SME Internet advertising market.
Discussions will be held to determine details of the partnership.
３．Outline of the Capital Partnership
GMO Internet will issue 5,054,152 common shares (Total issue value: 1,400,000,104 yen/ 5% of outstanding shares) to be underwritten by Yahoo. The two companies will take advantage of the allocation of new shares to further strengthen their business relationship.
*Please refer to the document Business and Capital Partnership with Yahoo! JAPAN posted today on our Investor Relations web site for details of the capital partnership.
Media Inquiries
GMO Internet Inc. Group PR Team
E-mail: [email protected]
GMO Internet Inc.
The GMO Internet Group
The GMO Internet Group is a leading force in the Internet industry offering one of the most comprehensive ranges of Internet services in Japan. We hold top domestic market shares in domain registration, web hosting and payment processing and we provide a host of other services including e-commerce solutions and Internet advertising to individual and corporate customers. Striving to redefine the industry and foster a vibrant Internet culture, the GMO Internet Group is continuously working to inspire enthusiasm in our customers and put smiles on their faces.
GMO Internet Inc.
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Company Name
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(TSE First Section Code: 9449)
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Address
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Cerulean Tower, 26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN
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CEO
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Masatoshi Kumagai
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Business Description
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■Internet Use Support (Infrastructure)
■Internet Advertising Support (Media)
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Capital
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￥9,651,750,000
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