Failure to Realize Expected Benefits from M&A and Business Alliances; Impairment Risk
First written in FY2025. 1 of 2 entries say "Materialised", first in FY2026. Latest entry: FY2026.
ALiNK Internet moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2023: 35 of 97 companies on the "Worse" side.
54 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The Group changed its policy from prioritizing monetization of the app on a standalone basis to prioritizing expansion of its user base, offering the app free of charge to maximize user touchpoints and seeking to maximize revenue across the business as a whole, including merchandise and events.」
After the acquisition of エンバウンド, the company changed its revenue model from the original plan based on app subscription revenue and recognized an impairment loss of ¥176.820 million on goodwill. An event has occurred in which the actual business plan differs from the initial M&A assumptions. - FY2025First statedAnnual report
「However, if these M&A transactions and business alliances fail to produce the expected benefits and their strategic objectives are not achieved, or if previously unrecognized liabilities or other problems are identified after the investment, the Group may need to impair the value of the target company's shares or the acquired business assets, which could affect its financial position and operating results.」
In line with its policy of pursuing M&A and business alliances, the company separately disclosed the potential risks of failing to achieve the expected benefits, unrecognized liabilities and impairment of business assets.