Softbank – Boss complains about poor investment balance

Softbank – Boss complains about poor investment balance

5. September 2023 0 Von Horst Buchwald

Softbank – Boss complains about poor investment balance

New York, 9/5/2023

 

Founded by tech billionaire Masayoshi Son, the SOFTbANK group has had a poor investment record, Son claims. Blame is so widespread on the boss – most notably British chip designer ARM. The group had to pay 32 billion US dollars for this in 2016.

Well Tough ARM filed with the Securities and Exchange Commission last month for an initial public offering (IPO) scheduled for Sept. 13. SoftBank hopes to reverse its revenue decline once the IPO kicks off. In 2016, Son said he was confident that ARM would „grow 5x in five years.“ However, ARM has posted a 65% revenue increase since 2016, falling well short of Son’s target.

Analysts expect ARM’s IPO on the Nasdaq exchange to be its biggest of the year. SoftBank Group is expected to sell 10% of its stake in the company. ARM valued itself at $64 billion when it bought a stake in its own Vision Fund in April. If that valuation is confirmed at the time of the IPO, ARM will have doubled SoftBank’s investment.