Rakuten Inc. President and CEO Hiroshi Mikitani gives a speech during Rakuten Optimism 2019 on July 31, 2019 in Yokohama. Japan.
Tomohiro Ohsumi | Getty Images News | Getty Images
Japanese technology giant Rakuten plans to raise $ 2.2 billion to help it compete with its American rivals.
The company announced Friday that it will issue 211,656,500 shares at 1,145 Japanese yen ($ 10.5) per share.
The national postal service Japan Post is expected to buy 131,004,000 shares for 8.3%, Chinese internet company Tencent is expected to buy 57.382.900 shares for 3.6%, and American retailer Walmart is to buy 14.536.000 shares for 0, 9%.
The payment date will be between March 29th and April 30th.
Hiroshi Mikitani, founder, president and CEO of Rakuten, said in a statement: “These new investments in Rakuten indicate high expectations for the growth and impact of the Rakuten ecosystem with mobile service at its core, as well as great potential for future collaboration with leading companies in the world’s top three economies. “
Founded in 1997, Rakuten has more than 70 companies and 1.4 billion members worldwide. Rakuten Ichiba is one of Japan’s largest e-commerce sites, but Rakuten’s market cap is $ 16.5 billion. Meanwhile, Amazon is valued at more than $ 1.5 trillion.
Rakuten is also known for its video streaming service Rakuten TV. In recent years, Rakuten has acquired several companies, including the Viber messaging app and the Kobo e-book platform.
At a news conference on Friday, Mikitani said that Rakuten faces extremely powerful technology forces led by GAFA (Google, Amazon, Facebook and Apple).
Rakuten and Japan Post are planning partnerships in the logistics, mobile and payments businesses, while there is also the possibility of partnerships with Tencent.
“The new partnership potential with Tencent opens up a broad portfolio of opportunities, from digital entertainment, including online games, to e-commerce,” said Mikitani in a statement. “We are also excited about Walmart’s financial commitment as they continue to invest in the future of retail.”
Martin Lau, CEO and President of Tencent, said in a statement: “Rakuten has built a vibrant ecosystem through its membership and loyalty program, extending its unparalleled e-commerce strength to FinTech and digital content.”
“Tencent shares Rakuten’s aspiration to create value through innovation and empowerment for users and partners. We are excited to invest in Rakuten, supporting its evolution to a global innovation leader. We look forward to pursuing strategic cooperation in activities, including digital entertainment and e-commerce, creating value for users and building the Internet ecosystem together. “
Rakuten shares rose more than 8% to 1,142 Japanese yen in the Tokyo market on Friday.