KDDI
Strategic Concepts & Mechanics
Primary Evidence
"Masayoshi Son, in the globally reorganizing telecommunications industry, acquired the Japanese subsidiary of Vodafone for about 2 trillion yen. While Vodafone had consolidated sales of 1.47 trillion yen and an operating profit of 158 billion yen (both in the fiscal year 2004), SoftBank, for the fiscal year ending March 2005, had consolidated sales of about 840 billion yen and an operating loss of about 25 billion yen. It had been posting deficits of several hundred billion yen up to that point. The acquisition of Vodafone Japan was precisely an M&A where a small entity swallows a larger one. At that time, to compete with NTT and KDDI as a telecommunications infrastructure provider, SoftBank was heavily investing in Yahoo BB and had just acquired Japan Telecom, a fixed-line phone company."
"Vodafone, lagging behind NTT DoCoMo and KDDI’s au in transitioning to third-generation mobile phones, indicated a withdrawal from Japan as part of its revised global strategy. It was the opportunistic Masayoshi Son who responded sensitively to this. He decided to capitalize on the hard-earned license and made the bold move to acquire at 2 trillion yen."