Chinese billionaire Jack Ma resigns from SoftBank amid historic losses

Chinese billionaire Jack Ma resigns from SoftBank amid historic losses”

Tokyo:Alibaba Co-founder Jackma has stepped down from the board of Japanese conglomerate SoftBank Group after serving it for almost 13 years, the company announced on Monday. The announcements come ahead of what is widely expected to be an historically bad earnings report for the Japanese tech conglomerate.

In addition to Yanai's departure, power struggles inside SoftBank's $100bn Vision Fund past year led to the departure of Mark Schawrtz, the company's longstanding independent director.

Last month, SoftBank forecast a net loss of 900 billion yen ($8.4 billion) for its fiscal year. That investment was among SoftBank's most successful and the Japanese company still holds a 25 per cent stake worth around $136bn in the Chinese conglomerate.

That first buyback, announced in mid-March, initially failed to lift SoftBank's stock amid concerns the conglomerate's portfolio of startups is vulnerable to the economic shock from the coronavirus pandemic.

Chief Executive Masayoshi Son's strategy of fronting huge sums of cash and pushing for breakneck growth had already delivered two consecutive quarters of loss at the $100 billion fund before being upended by the coronavirus outbreak.

Operating losses for the year were 1.36 trillion yen, having forecast 1.35 trillion last month. Son invested $20 million in Alibaba in 2000 - a bet that turned into $60 billion when Alibaba went public in 2014.

Son's increasingly risky bets over the past few years coincided with departures from SoftBank's board of some of it most outspoken members.

More news: European season to finish by August: UEFA president

The coronavirus pandemic has dealt a severe blow to loss-making Vision Fund investments.

Aside from Ma's departure, three new board members were announced, including two external directors: Lip-Bu Tan, the founder of venture capital firm Walden International and CEO of a software and engineering services company, and Yuko Kawamoto, a professor with Waseda Business School.

The group has pledged the sale or monetisation of $41 billion in assets, in part to finance a 2.5 trillion yen buyback to prop up its share price. SoftBank's financial chief Yoshimitsu Goto was the third board appointment.

The company said on Friday that it had bought 250.6 billion yen of its own stock since March 13 under the original re-purchase plan, about half of the 500 billion yen budget.

The turmoil has given leverage to US activist shareholder Elliott Management, which in addition to recommending share buybacks is pushing for greater transparency and oversight.

Shares in SoftBank rose about 1.7% in Tokyo, outperforming the broader Nikkei 225, which was trading about 0.5% higher.

Like this



18 May 2020
Navarro: CDC ‘Really Let the Country Down’ on Coronavirus Testing Early On
Robert Redfield testified in March that the initial test kit "did not perform the way we wanted it to perform". We had the same discussion six weeks ago about ventilators.

18 May 2020
NYC tourist arrested in Hawaii after Instagram pics showed him at beach
Hotel guests don't receive housekeeping services and must arrange for food to be delivered to them. At least 20 people have been arrested violating Hawaii's mandatory quarantine .

18 May 2020
Japan's growth drops amid pandemic, worse times likely ahead
The pandemic has been massively disruptive on supply chains and businesses, particularly in trade-reliant nations such as Japan. The jobless rate in March rose to its highest in a year, while job availability slipped to a more than three-year low.

18 May 2020
Over 100 nations back Australia's coronavirus probe call ahead of World Health Organization event
At present global cases of infection have surged over 4.7 million, with 313,713 dead and million still sick with the disease. The proposed inquiry has been condemned by China and blamed for a bilateral trade rift.

18 May 2020
NY launches interactive map to find COVID testing sites near you
Howard Zucker added that total capacity was around 80,000 to 90,000 per day with the inclusion of private lab tests. New Yorkers can search "COVID testing near me" on Google Maps to easily find the nearest testing sites.

18 May 2020
Trump softens on cutting funding to WHO
Still, may 14 the United States administration announced the partial resumption of funding to the world health organization. Have not made a final decision.

18 May 2020
Harvick wins NASCAR’s return race at Darlington
Harvick earned his 50th career victory in a race contested without fans and with a number of new health safety precautions. It was just the second crash of the race after Ricky Stenhouse hit the wall coming out of the same turn on the first lap.

18 May 2020
New Dual Screen Surface Tablet Delayed
The title gives away the secret and it's the Snapdragon 855 from previous year that will power this dual-screen Android phone. It'll feature USB-C fast charging, but I hear that current test units do not have wireless charging or NFC capabilities.

18 May 2020
Salah's agent dismisses claims Liverpool star was approached by Madrid
In his autobiography, the 35-year-old Juventus ace veteran Italy said: "Ramos has always said it was unintentional". Without him, stars like Raphael Varane, Dani Carvajal and Marcelo seem like kids from the Primavera team.

18 May 2020
Rocky COVID-19 nurse tested again as taskforce is set up
Residents of a central Queensland aged care facility have been evacuated in a bid to stop a possible outbreak of coronavirus. Public health officers directly contact all relevant individuals connected to a confirmed case of COVID-19.