The buyback will start Monday and continue over a year. The firm’s shares have dropped nearly 25 per cent this month as SoftBank grapples with Oyo cutting 5,000 staff, Uber slashing costs in search of profitability and WeWork trying to turn things around after its failed attempt to go public. (Reuters)
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The buyback will start Monday and continue over a year. The firm’s shares have dropped nearly 25 per cent this month as SoftBank grapples with Oyo cutting 5,000 staff, Uber slashing costs in search of profitability and WeWork trying to turn things around after its failed attempt to go public. (Reuters)
Talking point: Elliott Management wanted SoftBank to buy back US$20 billion in shares and sell down its Alibaba stake to raise new money. That’s not what’s happening today but if things deteriorate more it may need to. SoftBank currently has a US$153 billion stake in Alibaba and has already borrowed US$8 billion against that stake. According to one banker with knowledge of the situation who spoke with The Information, if Alibaba shares drop to US$128 SoftBank will need to pay its lenders to make up for the decline in the stock’s value. The firm’s stock is currently at US$188. It’s not just Elliott increasing pressure on SoftBank.
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