ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Companies

Yahoo Japan to vote against online shopping partner Askul's CEO

Rift deepens as office supply vendor looks to cut ties with top shareholder

Yahoo Japan and Askul's online shopping joint venture, Lohaco, has seen brisk revenue growth but is still posting operating losses.

TOKYO -- Japanese office supplies vendor Askul has proposed ending its partnership with No. 1 shareholder Yahoo Japan, following Yahoo's announcement that it will vote against the reappointment of Askul chief executive Shoichiro Iwata next month.

Yahoo owns 45% of the Tokyo-listed Askul, making it a consolidated subsidiary. Askul is now talking with several companies and investment funds in an effort to find an alternative to Yahoo.

The two companies formed a partnership in 2012 and together launched online shopping site Lohaco, which generated 51.3 billion yen ($474 million) in revenue last fiscal year.

Yet, while the e-commerce venture has seen double-digit revenue growth, it is still operating at a loss. Yahoo "came to question CEO Iwata's ability to plan and execute businesses," the internet company said in a statement.

Online commerce is a growth pillar for Yahoo, along with other segments including advertising. Looking to make up ground on rivals like Amazon Japan and Rakuten, Yahoo Japan President Kentaro Kawabe approached Iwata in January about acquiring Lohaco.

Askul rejected the proposal, saying its logistics and office supply sales were inseparable from Lohaco. Askul's independent committee, made up of unaffiliated directors and external statutory auditors, said cooperation with Yahoo on Lohaco has become "difficult."

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media