Masayoshi Son, founder of the multinational conglomerate, is considering a gradual stock buyback until he has a big enough stake to squeeze out remaining investors and take his company private, according to a Bloomberg report. The process would likely take over a year. (Bloomberg)
Talking point: Son has apparently been debating a buyout for years, especially after SoftBank’s shares plunged in March, but had difficulty obtaining financing for a deal in March. His ownership stake is at 27 per cent—once that reaches the 66 per cent mark, Son could compel other shareholders to sell their investments. In March, SoftBank sold US$41 billion in assets to redeem debt, build up its cash reserves, and prop up its stock price after a disaster investment in co-working-space startup WeWork. Its US$680-million investment in the newly public DoorDash, however, is now worth US$11.5 billion, based on the delivery app’s IPO price of US$182. SoftBank is now sitting on US$80 billion in cash. The company’s stock surged as much as seven per cent, after reports of the buyout surfaced.