Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ariba Technologies (Nasdaq-ARBA) -- Ignore unavailable to you. Want to Upgrade?

To: Dalin who wrote (1364)	10/23/2000 8:28:50 AM
From: John Carragher	Read Replies (1) \| Respond to of 2110

Ariba Will Sell 40% Stake to Softbank In Hopes of Easing Its Push Into Japan By ROBERT A. GUTH Staff Reporter of THE WALL STREET JOURNAL TOKYO -- A gold rush by U.S. technology companies into Japan's growing Internet market is gaining speed, as underscored by Ariba Inc.'s move to beef up its Tokyo unit by taking a $40 million investment from Softbank Corp. The deal is the latest by a growing number of U.S. Internet companies pushing into Japan. Despite the recent carnage in Internet stocks in the U.S., demand for Internet-related equipment and software is growing among large Japanese companies. Hoping to capture a wave of big orders, some of the biggest Internet names are setting up shop in Japan, including AboveNet Communications Inc. and Exodus Communications Inc., which operate Internet data centers. Internet investor and holding company Softbank said it will take a 40% stake in Nihon Ariba KK, the Tokyo unit of Ariba, of Mountain View, Calif. Ariba will hold 55% while the remaining 5% will be reserved for the Nihon Ariba's employees and management, executives said. "It's extremely important for the future of Ariba to be highly successful in Japan," said Ariba President Larry Mueller. The deal could quickly expand the scope of Ariba's operations in Japan, the second-largest market in the world for its line of business, which is supplying software and services that enable companies to buy and sell over the Internet with other companies. Its revenue swelled to $279 million in the year ended Sept. 30, from $45 million a year earlier. Executives forecast the Nihon Ariba venture will post revenue of 10 billion yen ($92 million) by about the end of 2001. The company plans to seek a stock-market listing within 18 months, Mr. Mueller said. "Japan is lagging behind the U.S. by a few years, so the business-to-business market in Japan will grow very rapidly," said Softbank Chairman Masayoshi Son. Citing statistics from Japan's Ministry of International Trade and Industry, Mr. Son said Japan's business-to-business market for commercial transactions via the Internet should grow to 68 trillion yen in 2003, from 19 trillion yen this year. In an interview, Mr. Mueller said he and Mr. Son have begun talks on expanding their partnership into China and South Korea. Mr. Mueller expects to have joint-venture deals in those countries by the first quarter of 2001. Executives said the companies plan to first introduce Ariba software and services among Softbank's group of 450 Internet companies, which include Yahoo Japan and the Japan unit of E*Trade Group Inc. The unit also plans to quickly build a base of customers among large Japanese companies that, for instance, want to cut procurement costs by buying parts online. Write to Robert A. Guth at rob.guth@wsj.com