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SoftBank Corp. (SFBQF)

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13.40+0.15 (+1.13%)
At close: 11:22AM EDT
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Previous close13.25
Open13.56
BidN/A x N/A
AskN/A x N/A
Day's range13.40 - 13.56
52-week range12.63 - 14.11
Volume1,524
Avg. volume1,918
Market cap61.855B
Beta (5Y monthly)0.21
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yield0.80 (6.06%)
Ex-dividend date30 Mar 2021
1y target estN/A
  • Tencent and Baidu Fined by Antitrust Regulator For Previous Deals
    Bloomberg

    Tencent and Baidu Fined by Antitrust Regulator For Previous Deals

    (Bloomberg) -- China’s antitrust regulator fined some of its largest tech giants including Tencent Holdings Ltd., Baidu Inc., ByteDance Ltd. and Didi Chuxing for past acquisitions and investments as it stepped up its crackdown on the sector.Pony Ma’s Tencent is being fined 500,000 yuan ($77,000) for its 2018 investment in online education app Yuanfudao, according to a statement by the State Administration for Market Regulation on Friday. Baidu was fined the same amount for its 2014 takeover of Ainemo Inc., a maker of consumer electronics including voice-controlled speakers. The firms are being censured for not seeking prior approvals for the deals -- a violation of country’s anti-monopoly laws -- though the regulator had determined the deals themselves aren’t anti-competitive.Tencent and Baidu join fellow behemoth Alibaba Group Holding Ltd. in coming under fire from the country’s powerful antitrust regulator, as Beijing steps up efforts to rein in its once free-wheeling technology industry. The regulator had last year issued fines against Alibaba as well as Tencent unit China Literature Ltd. for similar violations.“The message is clear that seeking government approvals in deals like these are a must.” said Ye Han, a partner at Beijing-based law firm Merits & Tree, who specializes in antitrust and M&A. “While we haven’t seen cases where companies got broke up or mergers got unwinded, such evaluations are likely going on behind the scene.”Didi Mobility Pte, a unit of ridehailing giant Didi Chuxing, and Japan’s SoftBank Corp. were also issued fines of 500,000 yuan each -- the maximum penalty possible -- for setting up a joint venture without permission. A ByteDance unit and its partner Shanghai Dongfang Newspaper Co. were also penalized the same amounts for a 2019 partnership that created a video-copyright venture. ByteDance said the joint venture has since been canceled.Technology companies like Tencent had previously carried out mega mergers and acquisitions through so-called Variable Interest Entity structures, which operate on shaky legal grounds. The new antitrust rules, accompanied by the fines handed down by the regulators, are a signal VIEs are now under their oversight.What Bloomberg Intelligence SaysTencent’s ability to strengthen its domestic ecosystem through M&A may be significantly weakened on rising anti-monopoly scrutiny, underlined by a 500,000 yuan fine by the State Administration for Market Regulation on March 12 for failing to seek approval for its investment in online education platform Yuanfudao in 2018. While the amount is immaterial to Tencent, retroactive application of new anti-competitive rules announced in November may be a stern warning to toe the line in future.-- Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.Other companies that were penalized in the latest round include TAL Education Group and Intime Retail Group Co.(Updates with details on ByteDance in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Bloomberg

    SoftBank to Merge PayPay and Line Pay Apps in Japan

    (Bloomberg) -- SofBank Group Corp.’s telecom arm, which on Monday completed the merger of its Japanese internet business with messaging service owner Line Corp., plans to combine the payment apps of those two entities.The company will fold Line Pay into PayPay, backed by SoftBank Corp., its Yahoo Japan unit and India’s Paytm, in April 2022 provided it secures all the relevant regulatory approvals, according to a joint statement from the two payment operators. SoftBank had kept mum on the possibility of a payments merger, saying only it aimed to extract synergies from the overlapping businesses.Under a complex transaction that takes effect on Monday, SoftBank Corp. and Line’s parent Naver Corp. each own half of a newly created A Holdings Corp. That company in turn controls 65.3% of publicly traded Z Holdings Corp., taking SoftBank’s Yahoo Japan and Line’s operations under its umbrella. The deal was targeted for completion by October but got delayed by pandemic-induced market disruptions. It’s also come under attack from overseas hedge funds that said the tender offer price was too low.The name is designed to symbolize everything as in “from A to Z,” reminiscent of Amazon.com Inc.’s motto, SoftBank has said. The letters also signify its focus on artificial intelligence and plans to expand in Asia.PayPay had 36 million users in Japan as of the end of February, while Line Pay had about 39 million. The merger gives PayPay access to over 80 million Japanese users on Line’s messaging service. The former rivals are already combining their respective businesses and Line Pay users will be able to make payments at PayPay locations where QR codes payments are accepted starting second half of April.Masayoshi Son, the SoftBank founder who backs some of the world’s largest startups, engineered the deal to create a Japanese tech champion that can compete with global rivals like Google, Amazon and Tencent Holdings Ltd. The combined company aims to spend 100 billion yen ($939 million) annually on development of AI-powered products.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Masayoshi Son Just Pushed SoftBank Shares Past Dot-Com Peak
    Bloomberg

    Masayoshi Son Just Pushed SoftBank Shares Past Dot-Com Peak

    (Bloomberg) -- For Masayoshi Son, these days are even better than the dot-com bubble.Shares in the Japanese billionaire’s SoftBank Group Corp. surged in Tokyo on Tuesday to the highest close since the company went public in 1994, rising past a long-standing record two decades ago.The shares rose 4.2% to finish at 10,420 yen, surpassing its previous record of 10,111.09 yen marked on Feb. 18, 2000. SoftBank’s share price increases have been backed by a surging stock market which lifted the value of its portfolio companies.The gains come on the heels of last week’s record earnings at its Vision Fund, which reported an $8 billion profit in the three months ended in December. Son has said he wants 10 to 20 of his portfolio companies to go public each year. Already this year, South Korean e-commerce giant Coupang Corp. filed for a U.S. listing, which could more than triple the value of SoftBank’s $3 billion investment.“The global equity market rally is boosting people’s view on SoftBank’s first and second Vision Funds,” said Masahiko Ishino, an analyst at Tokai Tokyo Research Center.It’s a remarkable turnaround for SoftBank, which just last May posted a record fiscal year operating loss of 1.35 trillion yen ($12.5 billion) after missteps with office-sharing provider WeWork and satellite startup OneWeb. The coronavirus pandemic compounded those challenges, putting in jeopardy Son’s investments in the so-called sharing economy. Shares fell as low as 2,687 yen apiece.In a bid to regain investor support, Son reversed his long-standing aversion to parting with equity investments. He pledged in March to sell off 4.5 trillion yen in assets and buy back 2.5 trillion yen of its own stock. He quickly peddled stakes in China e-commerce giant Alibaba Group Holding Ltd., T-Mobile US Inc. and SoftBank Corp., the domestic wireless business.While aggressive buybacks propped up SoftBank Group’s shares last year, surging demand for IPOs pushed the stock to new heights. In November, the Vision Fund reported a record profit, largely due to a $5.1 billion gain from its investment in a Chinese real estate startup called KE Holdings Inc.This month, SoftBank revealed the Vision Fund had made even more money in the December quarter. A rally in technology shares boosted the value of stakes in publicly traded firms like Uber Technologies Inc. and sparked strong demand for IPOs from portfolio companies such as DoorDash Inc. SoftBank invested about $680 million for a stake in DoorDash that is now worth about $9 billion, Son said last week.The lofty share price may bring back bubble-era memories, when Son briefly became the world’s richest man from backing hundreds of dot-com startups -- only to see his fortune plunge by $70 billion in a matter of months.Last week, he revisited his argument that SoftBank is like a goose that lays golden eggs, from Alibaba two decades ago to DoorDash and Coupang now. At one point, he marched in place while an animated goose laid sparkling eggs and music from Tchaikovsky’s Nutcracker played.“Since the Vision Fund launched, the number of golden eggs is in accelerating mode,” he said. “We are finally in the harvesting stage.”With Tuesday’s rally, the stock has surpassed Ishino’s target share price of 10,000 yen. The stock also trades above analysts’ 12-month consensus of 9,592.14 yen, according to data compiled by Bloomberg. The 14-day relative strength index on SoftBank stock hovers above the 70 mark, an indication that shares may be poised for a downward correction.Read more: Masayoshi Son Explains the Vision Behind SoftBank’s Vision FundIshino said it’s “possible” for SoftBank’s stock to head for levels near 15,000 yen, as Son has asked investors to evaluate the stock based on its net asset value, or the value of its equity holdings less its net debt. SoftBank calculated its net asset value at 14,935 yen a share as of Jan. 1, with much of that coming from Alibaba.“My eyes are on how the net asset value growth takes its course from here,” Ishino said. “Currently, it relies heavily on Alibaba. The focus will be on whether it is able to lift expectations for its other investments in the two Vision Funds, as it cuts back on Alibaba.”(Updates to add a chart)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.