E*Trade Group Inc and Softbank Corp are forming a joint venture, E*Trade Japan KK to offer internet stock trading, hoping to capitalize on the economic reforms in Japan that began on April 1. Softbank will own 52% of the venture with E*Trade holding the remainder. The two companies know each other well because Softbank was one of the first investors in E*Trade. And in a separate announcement yesterday, the pair said an agreement had been struck whereby Softbank may purchase up to another $50m E*Trade stock through a private placement at E*Trade’s behest. As part of the Japanese economic reforms, private investors are being encouraged to invest in stocks than previously, hence the two companies’ optimism that they are moving into the Japanese internet discount broker market at the right time.
