Line Corp could attain its goal of getting 500 million users to its platform before the close of this year even as it mulls on a possible public debut, Bloomberg reported.
South Korea-based Naver Corp has a controlling stake in the mobile messaging service that holds headquarters in Tokyo. Citing a statement issued by Line today, the report said an estimated 85% of its existing 370 million users are from outside its home turf in Japan. In a briefing, Line Chief Operating Officer Takeshi Idezawa revealed that in the US and Malaysia, Line has over 10 million users, the report said.
People knowledgeable about the matter told Bloomberg that Softbank Corp is looking to acquire a stake in the mobile messaging firm. However, Idezawa said today that Softbank has not presented a stake acquisition offer for Line. In a Bloomberg report yesterday, Merrill Lynch Analyst Yoshiyuki Kinoshita, who is based in Tokyo, said a partnership could be advantageous for the third biggest carrier in Japan because it could lure a younger clientele and increase usage.
Traditional text messaging services provided by wireless operators are now facing tough competition from services that are dependent on Internet access to allow users to send messages or make calls. This is exemplified by two major purchases of these services this month, with Facebook Inc's acquisition of WhatsApp Inc in a $19 billion deal and Rakuten's $900 million purchase of Viber, the report said.
Two of the sources familiar with the situation told Bloomberg that Line has obtained at least one more offer for a part of or the entire firm which caused the slowdown of its IPO preparations. The people spoke on the condition of anonymity since the information is confidential. BNP Paribas estimates put the value of Line at up to $14.9 billion, the report said.
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