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SoftBank
14-11-2019, 07:02 PM. (This post was last modified: 14-11-2019, 10:28 PM by CY09.)
Post: #21
RE: SoftBank
My opinion is that if not for the VC money (funded by cheap money), massive inflation would have occurred.

Because of VC's banking, we have been enjoying cheaper products such as Grab, Spotify, ecommerce, cheap airline fees and the shale oil revolution. Most of these companies are burning cash and making losses. They have been financed by large swath of equity money. Examples such as The purchase of CapitaLand vouchers at 10% discount that is financed by e commerce, Grab offers you discount to paying your taxes, airline like scoots burn through millions in losses each year etc

In my view, once the easy money sauce stops, be prepared for massive inflation. A contrarian view that a loose monetary policy will stoke inflation.

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17-11-2019, 11:15 AM. (This post was last modified: 17-11-2019, 11:16 AM by gzbkel.)
Post: #22
RE: SoftBank
The Softbank-WeWork End Game: Savior Economics or Sunk Cost Problem?
Aswath Damodaran
https://aswathdamodaran.blogspot.com/201...avior.html

Since my pre-IPO post on WeWork, where I valued the company ahead of its then imminent offering, much has happened. The company’s IPO collapsed under the weight of its own pricing contradictions, and after a near-death experience, Softbank emerged as the savior, investing an additional $ 8 billion in the company, and taking a much larger stake in its equity. As the WeWork story continues to unfold, I am finding myself more interested in Softbank than in WeWork, largely because it’s actions cut to the heart of so many questions in investing, from how sunk costs can affect investing decisions, to the feedback effects from mark-to-market accounting, and finally on the larger question of whether smart money is really smart or just lucky.
[...]

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06-12-2019, 07:36 PM.
Post: #23
RE: SoftBank
SoftBank's Son sticks with gut-led investing in chat with Alibaba's Ma

Sam Nussey
DECEMBER 6, 2019 / 1:25 PM

TOKYO (Reuters) - Weeks after his billion-dollar bailout of WeWork, SoftBank Group Corp’s founder and CEO Masayoshi Son reiterated his belief in an instinct-led investing style, in a discussion with Alibaba Group Holding Inc’s co-founder Jack Ma.

SoftBank owns 26% of China’s Alibaba, with its origin in a $20 million investment in 2000, and the stake is now worth more than the Japanese firm’s market capitalization.

Son on Friday said the decision to invest in Alibaba was driven by a gut feeling.

Other entrepreneurs Son met at that time “did not have true belief in their heart. I can feel,” Son said. “We are the same animal. We are both a little crazy,” he said of long-time ally Ma.

Ma said Son initially tried to invest $50 million in the e-commerce firm, but that he declined saying it was too large a sum - part of a pattern of offering big cheques to company founders that continued with WeWork co-founder Adam Neumann.

Son’s comments come weeks after he was forced to bail out office-sharing startup WeWork when Neumann’s level of control over his firm and hard-partying ways chilled investor appetite and crashed plans for an initial public offering (IPO).

Son last month said he misjudged Neumann’s character, after WeWork - formally The We Company - and other sputtering bets saw his $100 billion Vision Fund report an $8.9 billion second-quarter operating loss.

The conversation at Tokyo University between two of Asia’s most prominent tech entrepreneurs comes at a point of divergence in their careers, with 55-year-old Ma retiring as Alibaba’s executive chairman in September and Son pledging to spend his sixth decade at the helm of his investment juggernaut.

Domestically, SoftBank hopes to drive commercialization of the emerging field of artificial intelligence (AI), announcing on Friday it will spend 20 billion yen ($184 million) over 10 years funding an AI research institute with Tokyo University.

Son “probably has the biggest guts in the world on doing investment,” Ma told attendees to the conference.

“Too much guts, sometimes I lose a lot of money,” Son responded.

With the highly leveraged SoftBank trying to raise funds for a second mega fund in which it is currently the only investor, its stake in Alibaba is one possible source of funds.

More details in https://www.reuters.com/article/us-softb...SKBN1YA0HB
=========== Signature ===========
Specuvestor: Asset - Business - Structure.

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11-12-2019, 09:40 PM.
Post: #24
RE: SoftBank
Hmmm, is the force strong with this one ?

Trading at less than sum-of-parts(not taking tax into a/c), but I think valuation may be difficult and tech companies are prone to mkt whims and fancies.

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Wanted: Bold activist to take on SoftBank
Wed, Dec 11, 2019 - 5:50 AM

MASAYOSHI Son's SoftBank Group is worth significantly less than the sum of its parts. For an activist investor with plenty of cash and the stomach for a fight, it could be the trade of a lifetime.

Mr Son's US$82 billion tech-to-telecom conglomerate ticks the boxes for pushy shareholders like Dan Loeb's Third Point Management or Paul Singer's Elliott Management. There's poor governance - Mr Son is both chief executive and chairman and makes investments in cash-burning companies like WeWork partly based on his ability to "feel the force"........

https://www.businesstimes.com.sg/garage/...n-softbank

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06-01-2020, 10:17 PM.
Post: #25
RE: SoftBank
More issues for Son ....

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'Toxic' culture and troubling incidents at Oyo
Mon, Jan 06, 2020 - 5:50 AM

.....Oyo offers rooms from unavailable hotels, such as those that have left its service...

Thousands of the rooms are from unlicensed hotels and guesthouses, its executives have acknowledged....

Oyo has also imposed extra fees on hotels and declined to pay the hotels the full amounts they claimed they were owed, according to interviews with hotel owners and employees, emails, legal complaints and other documents viewed by the paper. Some hotel operators have sought to file criminal complaints against Oyo, which said it withheld payments primarily over the hotels' customer service issues....

It would also be another black eye for SoftBank, which is Oyo's biggest investor and owns half the startup's stock. Masayoshi Son, SoftBank's chief executive, has hailed Oyo as a jewel of his company's US$100 billion Vision Fund, even as he recently wrote off billions of dollars on other investments like WeWork......

In December 2019, SoftBank and Mr Agarwal put another US$1.5 billion into Oyo to accelerate its expansion. The funding, negotiated over the summer, valued the company at US$8 billion. At the same time, two other big investors, Sequoia Capital and Lightspeed Venture Partners, reduced their holdings.....

https://www.businesstimes.com.sg/real-es...nts-at-oyo

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