Softbank Profit Surges Fourfold

"The talks have just started," said Masayoshi Son, president of Softbank Corp., at a news conference about earnings. "We need much more exchange before coming to a final decision."

Last week, Microsoft offered to buy Yahoo Inc. for about $44.6 billion. Softbank owns a 3.9 percent stake in Yahoo of the U.S. and about 40 percent of Yahoo Japan. Yahoo Inc. in turn owns about a third of Yahoo Japan.

Son declined to elaborate on his role in the talks or a possible outcome. But, in response to a reporter's question, he denied he was thinking of offering a counter offer to buy Microsoft Corp.

"Anything is possible, but I'm not thinking about that at the moment," he said.

Softbank, which has built its Internet empire through acquisitions, bought Vodafone's Japan unit for US$15 billion in 2006.

Son, who boasts friendships not only with Yang but also Microsoft Chairman Bill Gates, noted Yahoo and Softbank have two important assets in common Yahoo Japan and Chinese search engine Alibaba Group.

Revenue related to Softbank's one-third stake in Alibaba was a major boost to its October-December profit, lifting it by more than sixfold to 46.73 billion yen (US$438.8 million; euro300.1 million) from 7.49 billion yen. Softbank booked a 57 billion yen (US$535.2 million; euro366 million) one-time gain from the listing of affiliate Alibaba.com Ltd. in Hong Kong.

Son stressed Yahoo and Alibaba were still more popular search engines in Asia than Google, underscoring a cultural difference.

If Yahoo rejects Microsoft, some analysts believe the company may have to line up another acquisition offer, or make changes to better satisfy shareholders. Google reportedly has broached a potential partnership with Yahoo, but that alliance might be blocked by antitrust regulators.