TOKYO, Jan 17 (AFP) - Japan's Softbank Corp. said Monday its unit Softbank Commerce Corp. and the U.S. firm VerticalNet Inc. would join forces in a venture to allow commercial trading on the Internet. The report states that the new company, VerticalNet Japan Corp., would be set up with capital of 400 million yen ($3.8 million).
Softbank Commerce would own 60 percent and VerticalNet the rest. VerticalNet runs the portal site for business-to-business trading in the United States. Softbank, a parent company of Yahoo Japan Corp., has so far concentrated on business-to-consumer services in the e-commerce business. Softbank president and chief executive officer Masayoshi Son said at a news conference, "The aim of this business is to provide infrastructures on the Internet for e-commerce specialized in each different industry." The new service intends to link up businesses for information, interaction and trading on the Internet, and would start later this year after the joint firm was set up next month, Son added.
Softbank and VerticalNet would generate profits from advertising on the their portal site, listing charges and commissions from successful deals. Of the ideas put in motion, the joint venture would initially offer a portal site for some five industries in the first year of operations, Softbank officials said. It was expected to be in the black in three years, the officials said. VerticalNet's chief executive officer Mark Walsh said, "The Internet is best at creating a universe of suppliers for buyers with specific needs."
Founded in 1995, VerticalNet made an initial public offering last year and its shares are traded on the U.S. technology-heavy Nasdaq index. The company provides portal sites for 55 industries in the United States, with each online deal averaging $23,000, Walsh said. VerticalNet's chief executive officer Mark Walsh said, "The Internet is best at creating a universe of suppliers for buyers with specific needs."
