Rat-A-Tat-Tat

Arm could be IPO’d in five years, Softbank CEO Masayoshi Son told a Tokyo press conference yesterday. He said the company would consider the move to re-list Arm in five to seven years’ time.

Softbank paid $32 billion for the company in 2016, since when it has become loss-making – losing $200 million on sales of $1.4 billion in the nine months to December 31st 2017. Additionally, there were $370 million worth of write-offs.

25% of Arm was sold last year to Softbank’s Vision Fund for a reported $8 billion. Arm’s China operations have been transferred to the control of Chinese investors.

Softbank’s debt has risen to $147 billion and the company is relinquishing control of  its US telco Sprint and wants to IPO its Japanese telco.

Yesterday Son said he was selling Softbank’s taxi holdings – in Uber, Didi Chuxing, Grab and Ola – to the Vision Fund, though it’s not revealed for how much. The stake is reported to be worth $12.9 billion.

Yesterday Son said the Vision Fund had sold its stake in Indian on-line retailer Flipkart for $4 billion which it acquired eight months ago for $2.5 billion.

The Vision Fund raised $93 billion from international investors – including $45 billion from Saudi Arabia – of which it has, so far, spent  $29.7 billion on visionary tech investments including the dog-walking app Wag.

This is machine-gun fire investing and divesting.


Comments

2 comments

  1. There’s been quite a few big Fkipkart trades recently Mike, it seems a hot stock, but the pattern of Son’s trades look to me as if he’s raising cash where he can.

  2. Well if I could make 60% profit in 8 months I’d machine gun invest/divest as well ! But the Flipkart sale does seem to be the exception rather than the rule

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