Announcement of Partial Succession of Business by Company Split (Simplified absorption-type split)

　Rakuten, Inc. (hereafter “the Company”) announces that with an effective date of October 1, 2018 (expected), the company has decided that the "Rakuten Manga" and "Comic Manga★ Manga Gakuen" business conducted by the company will be succeeded to Mediano Co., Ltd., a subsidiary of MTI Ltd., by way of a company split (hereinafter referred to as the "Company Split"), as described below.
　Since this absorption split corresponds to simplified absorption split to which the provision of Article 784, Paragraph 2 of the Companies Act applies, the disclosure of certain items and details have been omitted from this announcement*.
　*Disclosure of certain items and details have been omitted as the impact on the Company’s consolidated total assets related to the Company Split is estimated to be less than 10%, and also less than 3% of the Company consolidated revenue as of the end of December 31, 2017.

1. Purpose of the company split
   
   

　"Rakuten Manga" has provided services to purchase and/or view e-Comics through a web-browser and use of a dedicated application since April 2016. "Comic Manga★Manga Gakuen", which the Company acquired in February 2009, also has provided similar services through feature phones. (hereinafter both business referred to as "the Business")  
　While these services have been used by many users, due to change in the competitive environment of the domestic e-Comics market, the Company has decided to transfer the rights of the Business to Mediano Co., Ltd to accelerate its further growth.

2. Summary of the company split

(1) Outline of the company split

Note）Since this company split corresponds to simplified absorption-type split prescribed in Article 784, Paragraph 2 of the Company Act, shareholders meeting of the Company to approve this company split will not be held.

 (2) Split method

　An absorption-type company split in which the Company is the splitting company and Mediano Co., Ltd is the successor company.

  (3) Details of allotments related to the company split

　The Company plans to receive a payment of JPY 41.3 million from Mediano Co., Ltd as a consideration of the company split.

 (4) Handling of subscription rights to shares and bonds accompanying the company split

　There is no corresponding matter.

 (5) Increase / Decrease of capital

　There will be no change in the company’s capital stock.

 (6) Rights and obligation to be succeeded

　Rights and obligation such as assets, liabilities and contractual positions regarding the company split which is prescribed in absorption-type company split contract will be succeeded.

 (7) Prospect of fulfillment of obligations

　The company split has no impact on the successor company’s ability to fulfill obligations.

3．Evidence of allotments related to the company split

　Calculation of money to be delivered by this Business in this absorption split was decided in consultation with Mediano Co., Ltd., with consideration given to the number of users, usage time, competitive environment and future growth prospects of the domestic e-Comic market.

4．Overview of companies involved in the company split

Business results

5．Overview of the business unit to be split and succeeded

(1) Business to be split

　Service providing e-Comics through smartphones, feature phones, and web browsers

 (2) Business results of the business to be split

　Revenue: JPY 484 million (For the year ended 2017)

 (3) Assets and liabilities to be split

　The assets or liabilities of the business which is prescribed in absorption-type company split contract are to be succeeded by this company split.

6．Post-company split details

　Following this company split, there are no changes to the business name, head office, title and name of representative, main business, shareholders’ equity and fiscal year end of the Company. Net assets and total assets are not finalized at this time.

7．Impact on business results

　No material impact on Rakuten Group consolidated financial results.