-=Line Corp (LN) to merge with SoftBank's Z Holdings Corp

• Z Holdings was formerly known as Yahoo Japan

Tokyo (Reuters) - SoftBank's Z Holdings Corp <4689.T> is in talks to merge with messaging app operator Line Corp, two sources said on Wednesday, the investment company's latest bet on a struggling tech firm.

A deal could see SoftBank Corp <9434.T>, which controls internet firm Z Holdings, and Line's parent Naver Corp <035420.KS> form a 50:50 venture that would control Z Holdings, which would in turn operate Line and Yahoo, the sources said.

The two parties were likely to reach a basic agreement by the end of the month, the sources said.

Naver was not immediately available for comment outside of business hours. SoftBank said nothing had been decided.

The talks were first reported by Kyodo news agency.

Line, which last year sold a majority stake in its mobile unit to SoftBank, has reported three consecutive quarters of operating losses as the company tries to jump start growth.

Z Holdings, formerly known as Yahoo Japan, made a move in September to take control of fashion e-tailer Zozo Inc in a $3.7 billion deal, as it bulks up against rivals like Amazon.com (AMZN).

Dealmaking by SoftBank Corp, controlled by tech conglomerate SoftBank Group Corp <9984.T>, comes despite weak performance of its technology bets of its parent, which recorded an $8.9 billion operating loss in the second quarter.

The group's first quarterly loss in 14 years followed a collapse in the value of its investment in office-sharing firm WeWork as investors have turned skeptical about the path to profitability at cash burning startups.

-=LINE Corp (LN) reports YTD 9 month results

LINE Corp reports YTD 9 month results 

• Co reports YTD 9 month results of JPY 12.184 bln, up 114% YoY; revs +17.4% YoY to JPY 121.2 bln (no comparable ests).
• Guidance: The Group's revenues for the current fiscal year (January 1, 2017 to December 31, 2017) are expected to be higher compared to the fiscal year ended December 31, 2016. Specifically, in LINE advertising, growth in revenues is expected primarily due to Official Accounts and the contribution from the revenues of performance ads following the launch of ads on LINE family service such as LINE Manga. With respect to content distribution, the Group expects to continue to generate steady revenues, mainly because the Group plans to appropriately update existing titles and implement marketing.