(Reuters) — Japan’s SoftBank plans to merge internet unit Yahoo Japan with messaging app operator Line to create a $30 billion tech giant, as it bags struggling internet companies to bulk up against rivals like Rakuten.

The telco in a statement said Yahoo Japan, which last month changed its name to Z Holdings, will merge with Line, owned by South Korea’s Naver, in a deal to be completed in October 2020.

The companies aim for a definitive agreement by next month in a transaction that will see SoftBank and Naver form a 50:50 venture that will control Z Holdings, which will in turn operate Yahoo Japan and Line.

Z Holdings will continue to be a consolidated subsidiary of SoftBank Corp, which is a unit of investment conglomerate SoftBank Group.

Z Holdings and Line will hold a news conference at 0800 GMT. | To read full story, visit https://startuparound.com/read/1574073004.9152586/SoftBank-proposes-$30-billion-merger-between-Yahoo-Japan-and-Line?ref=audio_experience