Name-your-price e-tailer Priceline.com Monday entered a partnership with Softbank E-Commerce Corp., stepping into the Japanese marketplace.
Priceline and Softbank E-Commerce Corp. will each
make investments in
priceline.com Japan Corp., which is expected to bring priceline.com’s
services to Japan beginning with leisure airline tickets and hotels.
Softbank will pay priceline.com an undisclosed annual licensing fee in respect of priceline.com’s intellectual property.
In
addition, priceline.com will purchase a convertible bond allowing
priceline.com to take a “significant” equity position in the company under
certain conditions.
Priceline.com Japan Corp. will license priceline.com’s business method
and benefit from priceline.com’s expertise in technology, marketing and operations.
Softbank E-Commerce Corp. will contribute its management
expertise to help identify, recruit and build Priceline Japan’s senior
management team, as well as leverage its local supplier contacts to
establish “name your price” services in Japan.
The launch is part of priceline.com’s plan for global expansion,
according to Richard S. Braddock, chairman of priceline.com.
“Any Internet company looking to build a successful worldwide business
and brand must have a significant presence and commitment to the Japanese market,” he said.
“Our goal is to establish
strategic alliances with the best companies and individuals to help deploy
international ventures at Internet speed.”
Priceline.com Japan is priceline.com’s fourth international expansion.
Plans are currently under way to set up Priceline.com Europe later this
year.
In January,the company announced the development of the buyer-driven
commerce platform Asia, and in February a new company, MyPrice, was
announced, which will bring the commerce system to
Australia and New Zealand.
