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How much Alibaba does Softbank own?
1. Softbank Group. Softbank’s stake in Alibaba is equivalent to approximately 25\% of the company; it is Alibaba’s largest shareholder. Softbank invested $20 million in Alibaba back in 2000 when it was a young startup.
Why is Alibaba declining?
Shares in Alibaba have collapsed by more than 50\% this year amid signs of slowing growth at the company. More broadly, the entire Chinese tech sector has been hit amid a widespread regulatory crackdown by Beijing as President Xi Jinping has tightened his control over the world’s second-largest economy.
Why did Alibaba stock drop so much today?
Shares of tech giant Alibaba continued to fall on Friday, adding to the stock’s massive selloff after the company said earlier this week that it expects weaker revenue growth amid China’s slowing economy and Beijing’s ongoing regulatory crackdown.
Did SoftBank sell Alibaba?
SoftBank founder Masayoshi Son made a $20 million investment in his friend Jack Ma’s fledgling e-commerce company in 2000, in what was arguably the best venture investment in history. SoftBank sold a small slice of its Alibaba shares as part of the asset sales program, but continues to hold most of its position.
Does SoftBank still own Alibaba?
SoftBank has bought back $22.6 billion of its own stock since March 2020, partly funded by monetizing its Alibaba stake. SoftBank Chief Executive Masayoshi Son said the company has no plans for a new buyback yet, though he is thinking about the timing and size for a potential one daily.
Why is SoftBank selling Alibaba?
China’s crackdown on its technology sector is the key reason for the selloff. SoftBank is a top investor in Chinese ride-hailing giant Didi, which has been hit by a data-security probe.
How much of Alibaba does SoftBank own?
Currently, Softbank has $245 billion of assets on its balance sheet, with its 25.5\% ownership stake in Alibaba accounting for 53\% ($130 billion) of those assets. That’s despite Alibaba stock falling 8\% year to date through March 26.
Is Softbank a buy or sell?
Long term, it’s a buy, but you might want to see if you can get some when the next round of selling comes between now and the summer. As for Softbank, it would be wise to hang on. Will Ashworth has written about investments full-time since 2008.
What does SoftBank’s $18 billion plan mean for investors?
As part of the plan, Softbank intends to repurchase as much as $18 billion of its stock, pay down some of its debt, and increase its cash reserves.
Why is Alibaba raising $41 billion through asset sales?
That’s part of the conglomerate’s plan to raise $41 billion through asset sales meant to shore up its balance sheet and keep activist investors like Elliott Management from taking more aggressive measures against Masayoshi Son’s struggling empire. Owners of Alibaba stock should not take this as a slight against the e-commerce giant.