TOKYO - The president of a Japanese mobile carrier that owns a stake in Yahoo said Thursday he is in talks with Yahoo chief Jerry Yang about how to respond to Microsoft's takeover bid.
"The talks have just started," said Masayoshi Son, president of Softbank Corp., at a news conference about earnings. "We need much more exchange before coming to a final decision."
Last week, Microsoft offered to buy Yahoo Inc. for about $44.6 billion. Softbank owns a 3.9 percent stake in Yahoo of the U.S. and about 40 percent of Yahoo Japan. Yahoo Inc. in turn owns about a third of Yahoo Japan.
Son declined to elaborate on his role in the talks or a possible outcome. In response to a reporter's question, he denied he was thinking of offering a counter offer to Microsoft Corp.
"Anything is possible, but I'm not thinking about that at the moment," he said.
Softbank, which has built its Internet empire through acquisitions, bought Vodafone's Japan unit for $15 billion in 2006.
Son, who boasts friendships not only with Yang but also Microsoft Chairman Bill Gates, noted Yahoo and Softbank have two important assets in common — Yahoo Japan and Chinese search engine Alibaba Group.
Revenue related to Softbank's one-third stake in Alibaba was a major boost to its October-December profit, lifting it by more than sixfold to 46.73 billion yen ($438.8 million) from 7.49 billion yen. Softbank booked a 57 billion yen ($535.2 million) one-time gain from the listing of affiliate Alibaba.com Ltd. in Hong Kong.
Son stressed Yahoo and Alibaba were still more popular search engines in Asia than Google, underscoring a cultural difference.
If Yahoo rejects Microsoft, some analysts believe the company may have to line up another acquisition offer, or make changes to better satisfy shareholders. Google reportedly has broached a potential partnership with Yahoo, but that alliance might be blocked by antitrust regulators.
In Japan's intensely competitive mobile service market, Softbank's price cuts have been luring subscribers away from Japan's top mobile company, NTT DoCoMo Inc., as well as from No. 2 KDDI Corp.
The defections to Softbank have accelerated since Japan adopted late last year "number portability," allowing people to switch carriers without changing phone numbers.
Softbank beat rivals in monthly subscriber gains for nine straight months, Son said. Softbank, which also offers Internet services, has been aggressive in wooing users with TV ads after it bought British cellular giant Vodafone Group PLC's struggling Japanese operations in 2006.
Symbolic of Softbank's aggressive tactics is a student discount starting this month that offers most services for free.
"We must first increase market share," he told reporters in a news conference broadcast live on the Internet.
Sales in the three months ended Dec. 31 was flat from a year earlier, inching down 1 percent to 694 billion yen ($6.5 billion) from 702 billion yen, the company said.
Japanese have been ahead of users in other nations in using cell phones to do restaurant searches, exchange e-mail, making electronic payments, read digital novels and download music.
Like offerings from rivals, Softbank's latest handsets show digital TV broadcasts and come with sophisticated digital cameras.
Son said that digital content, such as the news and entertainment, will increasingly be accessed on the Net via mobile phones as connection speeds grow faster. That will provide profit opportunities for Softbank, which he predicted will emerge the world's No. 1 Internet company in a decade or two.
For the first nine months of the fiscal year, Softbank's profit rose dramatically to 93.20 billion yen ($875.1 million) from 21.93 billion yen the same period the previous year. Nine-month sales rose 13 percent to 2.059 trillion yen ($19.33 billion).
Softbank shares jumped 6.2 percent to 2,130 yen ($20) in Tokyo. Earnings were announced after trading ended.
(This version CORRECTS in 4th graf that counter offer would not be to buy Microsoft.)
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