Z Holdings Corporation, a prominent Japanese conglomerate, has completed its intra-group reorganization and rebranded as LY Corporation. This follows the company’s announcement in February 2023 regarding its merger policy and subsequent decisions on reorganization and change of trade name. The reorganization involved absorption-type mergers and company splits with various wholly owned subsidiaries.
As part of the reorganization, LY Corporation assumed the role of the surviving company in absorption-type mergers with Yahoo Japan Corporation, Z Entertainment Corporation, and Z Data Corporation. Additionally, there was an absorption-type company split where LINE Corporation became the split company and LY Corporation became the successor company, and another absorption-type company split where LY Corporation became the split company and Z Financial Corporation became the successor company. To reflect these changes, the trade name of the company has been officially changed to LY Corporation.
In August 2023, the company also announced changes to its organizational and management structure in line with the reorganization. The new structure aims to enhance synergy creation across the entire group, drive improvements in product creation and profitability, and pursue the creation of new value.
LY Corporation’s main business activities include internet advertising, e-commerce, member services, and managing group companies. As of March 31, 2023, the company’s paid-in capital stood at JPY 247,094 million, and its fiscal year end is March 31.
The board of directors and executive corporate officers of LY Corporation have also been unveiled. Kentaro Kawabe is the Chairperson and Representative Director, Takeshi Idezawa is the President and Representative Director, CEO, and Junho Shin is the Representative Director, CPO, among other executives holding key positions.
Looking ahead, the reorganization is not expected to impact the company’s consolidated financial performance for the fiscal year ending March 31, 2024, as the estimated impacts, including cost reductions, have already been factored into the financial outlook. However, non-consolidated financial statements may reflect a Gain/loss on extinguishment of tie-in shares resulting from the merger with Yahoo Japan and the assumption of rights and obligations from LINE Corporation. The specific amount of this impact is yet to be determined and will be disclosed at a later date, if necessary.
As LY Corporation embarks on this new chapter, their focus remains on accelerating synergy creation, enhancing product creation and profitability, and actively pursuing new value creation. With these aims in mind, the company is poised to navigate the evolving landscape of the digital economy and continue delivering innovative solutions and services to its customers.
