SoftBank Group Corp's decision to sell down its Alibaba Group Holding stake for a $34 billion gain. CEO Masayoshi Son was formerly one of the sector's biggest cheerleaders. Son will reduce his conglomerate's stake in Alibaba to 14.6% from 23.7%.

Alibaba has been added to the U.S. Securities and Exchange Commission's delisting watchlist as a result of a dispute over auditing compliance issues. Murky prospects for the Chinese economy as Beijing pursues a zero-COVID policy have also not helped.

Alibaba's shares have fallen by more than two thirds to value the company at $250 billion. Son's pullback contrasts with earlier optimism towards China tech that saw him pour $12 billion into ride-hailer Didi. Son also made outsized investments in Uber and office space firm WeWork.

Alibaba "is the only'representative mega-win' investment in the portfolio for now," analyst Travis Lundy wrote. ByteDance is one of eight assets in the first Vision fund with potential upside. The Beijing-headquartered company has received scrutiny in the West over its management of user data.

SoftBank shares closed up 5.6% on Friday, the first trading day after the Alibaba deal was announced late on Wednesday. The conglomerate's shares have gained 3.2% year to date. The company has announced a 400 billion yen ($3 billion) share buyback in addition to the current 1 trillion yen programme.
Posted by BI bizpoke
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