What do you think of SoftBank s sale of Alibaba shares?

On the evening of July 17, 2020, according to foreign media reports, SoftBank Group recently quietly sold $2.2 billion of Alibaba shares. SoftBank is owned by Masayoshi Son, Japan's richest man. In 2000, SoftBank Group invested $20 million in Alibaba, a small company at the time, which is now worth more than $150 billion.

Since 2000, SoftBank Group has invested $20 million in Alibaba, and then in 2004, it invested an additional $40 million, accounting for more than 28% of the shares. In recent years, Masayoshi Sun, who is known as half a Chinese, has been selling Ali's shares, which has also caused dissatisfaction among Ali's top management. In June 2016, it began to **8.9 billion US dollars in Ali shares, and successively in June 2019, **US million US dollars; In May 2020, **11.5 billion US dollars, a total of 31.5 billion US dollars were cashed out, equivalent to 220 billion yuan, and on July 17 this year, SoftBank Group sold 2.2 billion US dollars of Alibaba shares again to cash out.

According to reports, SoftBank Group has frequently cashed out in recent years to raise funds to pay off debts and buy back the company**. The final deal, which also includes options contracts and option spreads, is expected to settle between May 2024 and June 2024. Back on page 276 of its annual earnings report released on June 25, SoftBank had reported details of the deal, but ** never reported it.

According to authoritative information, at present, Masayoshi Son owes at least a trillion yuan of huge money, and he has become one of the most responsible people in the world, many people joke that the world's richest man has become the world's first negative, of course, these huge sums of money need to pay interest, it is said that on average, Masayoshi Son has to repay 2 to 300 million yuan of interest a day, but most of the trillions of arrears are long-term liabilities and do not need to be repaid in the short term, which also allows SoftBank Group to continue to operate normally. In 1995, Son invested $2 million in the fledgling Yahoo company, and continued to invest $100 million the following year. Today, the market value is as high as $500 million.

After that, he successively invested in Alibaba, which was also Son's most successful investment. It is normal for an enterprise to have debts, which can provide sufficient funds for the expansion and development of enterprises. The key is not to look at how big the number is, but to look at the specific debt.

To put it simply, reasonable debt means that the speed of making money is faster than the speed of repaying money, otherwise it is easy to break the capital chain and trigger a series of chain reactions. SoftBank Group, since 2014, Son Masayoshi has been in charge of more than one trillion yuan, which is why he frequently ** Alibaba shares. <>

SoftBank sells Alibaba shares and wants to cash out at the peak of Aliba's stock price and use it to support other companies under its name, which is really a helpless move!

I think it's normal, after all, SoftBank is not having a good time now, and there is no money.

The reason why this company wants to sell Alibaba's shares may be that it wants to invest in other industries.

Normal business planning. SoftBank is influenced by various factors and makes decisions based on its own company's development strategy.

Introduction: According to ** reports, SoftBank Group has released the latest announcement that it will withdraw a portion of its stake in Alibaba Group. SoftBank Group's previous stake in Alibaba has now declined.

SoftBank Group has sold this part of the stake and successfully realized $34.5 billion. Why did SoftBank Group make such a decision? In response to the questions, the founders of SoftBank Group held a press conference and responded, saying that the early settlement of shares was to reduce concerns about future revenues and also reduce the risk of trading.

SoftBank Group also said that after the realization of shares, SoftBank Group's ability to resist market risks will be further strengthened. SoftBank Group's announcement of the withdrawal of shares was also a deliberate decision. Of course, a decline in SoftBank Group's holdings in Alibaba** will result in the loss of SoftBank Group's directorships in Alibaba Group.

This will affect the soft drink group's voice in Alibaba Group, but SoftBank Group's revenue in Alibaba will not decrease. Alibaba's profits, and SoftBank Group will also benefit.

The path of raising funds for SoftBank Group has already begun in 2021. In 2021, SoftBank Group signed a long-term contract with a trading firm. Generally, there will be two ways to settle such a contract, the first is to exchange cash for **, which is what we usually call shares.

The second option is to keep the shares, which will be exchanged for cash if one party decides not to hold them**. Obviously, SoftBank Group chose the second settlement method and successfully cashed out.

SoftBank Group is facing a serious crisis, although it is still among the world's top 500 companies, but it has become a shell, and its losses are increasing year by year. On August 3, 2022, the relevant newspapers and periodicals released the list of world companies. SoftBank Group has successfully ranked first in the list of corporate losses, and has repeatedly broken the record of losses.

In such a situation, SoftBank Group has made a major decision, which is to hold a stake in Alibaba. With cash in hand, SoftBank Group has more confidence to deal with the crisis.

It may be that the company does not have future expectations, and it is natural to sell it, which is also good for them, which is certain.

Because they want to stop losing money, and they want to save some of the situation, not to make the situation so embarrassing.

Because SoftBank is financially overwhelmed and its losses are too severe, it will sell its holdings to recover in order to alleviate the economic crisis.

SoftBank, the largest shareholder of Alibaba, holds 746,998,571 shares of Alibaba Group, with a shareholding ratio. Japan's SoftBank: Holds about + shares.

Extended Materials

Founded in Japan in 1981 by Masayoshi Son and listed in Japan in 1994, SoftBank Group is a comprehensive venture capital firm focused on investing in the IT industry, including networks and telecommunications.

SoftBank has invested in more than 600 companies around the world and has a majority stake in more than 300 major IT companies around the world.

In July 2016, SoftBank acquired the British chip design company for 24.3 billion pounds (about 32 billion US dollars) in cash, and on May 5, SoftBank completed a $32 billion acquisition of Arm. On November 23, SoftBank will partner with OpenStreet to launch the "Hello Cycling" IoT bike-sharing system in Japan. In June 2017, the "2017 Brandz Top 100 Most Valuable Global Brands" was announced, and Software Bank Group ranked 95th.

On July 13, 2018, Japan's SoftBank Group released a new app that allows drivers to find and book parking spaces in Japan. On July 19, 2018, the Fortune Global 500 list was released, and Software Banking Group ranked 85th. In December 2018, the World Brand Lab released the list of "2018 Top 500 World Brands", and SoftBank ranked 3rd in the "2019 Hurun Global Unicorn Top 100 Active Investment Institutions" released by the Hurun Research Institute on November 16 of the same year.

SoftBank Group announced on March 23, 2020 that it is seeking to ** or monetize up to one trillion yen (about $41 billion) of its assets in order to buy back 2 trillion yen ** and reduce debt.

Brand ranking: In December 2018, the World Brand Lab released the list of "2018 Top 500 World Brands", and SoftBank ranked 465th.

In July 2019, the Fortune Global 500 list was released, and Software Banking Group ranked 98th.

On July 22, 2019, SoftBank Group ranked 34th among the 50 most profitable companies in the 2019 Fortune Global 500 with a profit of one million US dollars.

On November 16, 2019, the Hurun Research Institute released the "2019 Hurun Top 100 Global Unicorn Active Investment Institutions", and SoftBank ranked third.

In January 2020, the 2020 list of the world's top 500 most valuable brands was released, and SoftBank ranked 112th.

On May 13, 2020, SoftBank ranked 66th on the 2020 Forbes Global 2000 list.

On August 10, 2020, SoftBank Group ranked 94th on the 2020 Fortune Global 500 list.

In May 2021, SoftBank ranked 27th in the "2021 Forbes Global 2000".

On September 23, 2021, SoftBank ranked 129th in the 2021 "Top 500 Asian Brands" list.

Alibaba is not SoftBank Holdings.

Alibaba Group Holdings**** (abbreviation: Alibaba Group) is a company founded in 1999 in Hangzhou, Zhejiang Province, by 18 people led by Jack Ma, a former English teacher.

On September 19, 2014, Alibaba Group was officially listed on the New York ** Stock Exchange, creating the largest IPO record in history, **** "BABA", founded by Jack Ma. On November 26, 2019, Alibaba was listed on the Hong Kong stock market, with a total market value of over 4 trillion yuan, topping the Hong Kong stock market and becoming the "new stock king" of Hong Kong stocks.

Business Model:

Alibaba has formed a complete business ecosystem that focuses on the core business of e-commerce and the financial business that supports the e-commerce system, as well as supporting local life services, health care, etc., including games, **, ** and other pan-entertainment businesses and smart terminal businesses.

The core of this business ecosystem is data and traffic sharing, the foundation is marketing services and cloud services, and the integration of effective data is Alipay.

The above content refers to Encyclopedia - Alibaba.

SoftBank is already the largest shareholder this year, and Jack Ma has completely withdrawn.

Jack Ma does not own a stake in SoftBank, which is the majority shareholder of Alibaba.

Japan's SoftBank Group said on Monday, May 18, that Jack Ma will resign from SoftBank's board of directors, while SoftBank also announced the election of three new board members, including group CFO Yoshimoto Goto, at a shareholders' meeting on June 25.

The reason for Jack Ma's resignation from the board of directors of SoftBank Group was not explained in SoftBank's announcement, but it is likely to be part of Jack Ma's retirement plan. On September 10, 2019, Jack Ma officially announced his retirement and resigned as chairman of Alibaba's board of directors, and Daniel Zhang took over.

SoftBank is a shareholder of Alibaba and holds shares of Alibaba; And Jack Ma does not hold shares in SoftBank, which means that he is not a shareholder of SoftBank.

For Alibaba not to abandon SoftBank, and then set up a new Alibaba, it is because Alibaba itself is very grateful. And there is a patriotic enterprise.

Alibaba has a lot of patented technology that belongs to Alibaba, and if you give it to other companies, it will be illegal, and this is a copyright issue. If you open a new Alibaba, you have to start from scratch, and you need tens of billions of start-up funds, a technical team of tens of thousands of people, and Ma Yunyi, a smart and capable leader who has endured hardships, this is my opinion.

Mainly because the law prohibits this, prohibiting the same person from controlling multiple companies.

This is because Alibaba's strength is relatively strong now, and if you create another one, the competitive pressure will be relatively large, and then it will be difficult to achieve brilliance.

Without SoftBank, it is like a tree without roots and a building without a foundation.

This can ask Jack Ma's parents, why can't they have another Jack Ma?

The prospectus DU disclosed in detail: Japan's Softbank Group holds 797,742,980 shares, and DAO accounts for the proportion; Yahoo holds 523,565,416 shares, accounting for 523,565,416 shares; Jack Ma, chairman of the board of directors of Alibaba.

holding 206,100,673 shares, proportional; Alibaba co-founder Joe Tsai holds 83,499,896 shares, accounting for 83,499,896 shares.

Because it is not easy to re-establish an Alibaba again. <>It's not easy to rebuild an Alibaba now, and it's hard to reach the current height. At present, the competition of e-commerce in China can be said to be quite fierce.

Before that, JD.com had been catching up behind, and then Pinduoduo also broke out. Although Alibaba now has an advantage, it is still the number one e-commerce company, and the pressure can be said to be considerable. But if you re-establish Ali now, it will be difficult to survive in the gap between the three major e-commerce, and now domestic e-commerce talents are in Ali and other large Internet companies It is difficult to recruit so many talents, and you can only poach people from other companies, and the cost is very high.

Therefore, even if Jack Ma has a wealth of hundreds of millions, it will be difficult to create another Ali.

It can be said that SoftBank contributed to Alibaba's success. At Alibaba's most difficult moment, SoftBank chose to invest in Alibaba, which not only brought him capital, but also technical and network support, which allowed Alibaba to grow smoothly to its current scale. Moreover, SoftBank does not interfere in the company's affairs and has full trust in Jack Ma and the entire Alibaba team.

If Alibaba abandons SoftBank at this time, it will inevitably be spurned by people. If Ali has trouble in the future, no one will lend a helping hand anymore. <>

Doing great things is more about integrity. If Alibaba's market value is not worth anything, they will all lose money, and SoftBank will make back the money it loses from other platforms. If Ali loses trust, it will be doomed, so Jack Ma will not do that.

I think this matter can only be blamed on too many people who didn't have vision at the beginning, Ma Yun began to find a lot of big names to invest, but everyone didn't believe him. Eventually, he found Masayoshi Son, who reached out to help him. In the middle term, Alibaba was short of money, and Son didn't have much money, so he introduced Jack Ma to Yahoo and let Yahoo also invest.

Therefore, Ali will not abandon SoftBank.