Brother Industries sells 70% of XING to U-NEXT Holdings for ¥17.5bn

Brother Industries has agreed to divest 70% of its wholly owned subsidiary, XING Inc., to U-NEXT Holdings Co., Ltd., transforming XING into an equity-method affiliate. This strategic move, effective April 1, 2026, aligns with Brother Group's "CS B2027" mid-term strategy to accelerate business portfolio transformation and enhance long-term corporate value. The transfer involves 48,969,000 shares at a price of JPY 17,500 million.

U-NEXT Holdings, with its strong content distribution services and B2B customer base, will jointly promote XING's business operations, including its commercial karaoke and music/video software segments. This partnership aims to boost customer satisfaction and drive future business growth, though Brother Group will continue to manufacture JOYSOUND brand commercial online karaoke equipment.

XING Inc. reported total assets of JPY 25,554 million, net sales of JPY 27,708 million, and an operating profit of JPY 1,725 million for the fiscal year ended March 2025. U-NEXT Holdings, with JPY 259,782 million in total assets and JPY 390,408 million in net sales as of August 2025, will now hold a 70% stake in XING, while Brother Industries retains 30%.