TOPLINE
Technology investor SoftBank Group on Tuesday reported a record net profit of $ 11.8 billion in the quarter of April-June, thanks to the merger and a partial sale of its stake in US mobile carrier Sprint with T-Mobile and a recovery in its most controlled $ 100 billion Vision Fund, marks a return to profit after its worst year in history.
TOKYO, JAPAN – FEBRUARY 12: SoftBank Group Corp. Chairman and Chief Executive Officer Masayoshi Son … [+]
KEY FACTS
Masayoshi Son, the founder of the Japanese technology conglomerate, confirmed that securing cash remained his focus.
The profits were mainly boosted by the partial sale of its stake in the newly combined mobile company consisting of its American unit Sprint and larger rival T-Mobile.
The $ 100 billion Vision Fund, which ran a $ 18 billion run in the previous quarter, eked out an investment gain of $ 2.8 billion backed by a floating U.S. stock market with shares in the ride-sharing group Uber and app for messaging on workplace Slack with 11% and 16%, respectively, in the three months.
SoftBank also announced that it would set up a new $ 555 million fund with part of Son’s own money to invest in Amazon, Apple, Facebook and other established tech giants.
The recovery period is one of Son’s most tumultuous periods at SoftBank, which was forced to launch a $ 41 billion asset sales program to finance equity and reduce debt against the backdrop of the coronavirus pandemic.
On WeWork told Son Forbes that, “We paid too much appreciation for WeWork, and we believed too much in the entrepreneur. But I think, even with WeWork, we are now confident that we are introducing new management, a new plan, and we will reverse it and make a decent return. ”
Crucial quote
“We will strengthen our defense. . . until we overcome the coronavirus crisis, “Son told an online news conference on Tuesday Financial Times.
Key background
SoftBank has tried to get its own financial house in order. The company and its $ 100 billion Vision Fund have staked in many young companies that struggled well before the coronavirus struck. To discourage its own investors, SoftBank said it would sell assets up to $ 41 billion to repurchase $ 18 billion in shares and pay off debt in March 2020.
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Softbank Rebounds from Historic Loss (Financial Times)
Softbank does not buy $ 3 billion in WeWork Stock (The New York Times)
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