Will SoftBank sell Alibaba shares?
SoftBank Group Corp. expects to post a gain of more than $34 billion from selling down its stake in Alibaba Group Holding Ltd., cashing in on its most storied investment to shore up finances as global markets deteriorate.
SoftBank decided to hand 242 million shares in Alibaba to financial institutions because equity market conditions are challenging for a direct sale of the shares.
Timeline: China's crackdown on private enterprise (2021)
Hong Kong (CNN Business) SoftBank is set to gain more than $34 billion by cutting its stake in Alibaba (BABA), the crown jewel of its investment portfolio, after posting record losses on its tech bets this year.
Softbank Group
Softbank's stake in Alibaba is equivalent to approximately 25% of the company; it is Alibaba's largest shareholder. Softbank invested $20 million in Alibaba back in 2000 when it was a young startup. In fact, Softbank founder and CEO Masayoshi Son was the one that bought into Alibaba.
Ma stepped down as CEO of Alibaba in 2013 and then as chairman in 2019. He said as early as in 2014 he intended to reduce his stake in Ant to no more than 8.8% and he intends to donate 611 million shares to charity.
Yahoo infamously sold half of its stake back to Alibaba in 2012 through a deal that valued the shares at $13. Just two years later, Alibaba went public in a record-breaking U.S. IPO. Shares were $68 at the bell, and today they are worth around $181, so Yahoo missed out on an even greater fortune.
Much of Ma's wealth is linked to Alibaba. He used to own the largest controlling interest in the company and its subsidiaries, though he has been divesting his shares over time. In July 2020, he sold another $8.2 billion worth of shares, leaving him most recently with a 4.8% stake in the company.
Alibaba Group Holding Limited, also known as Alibaba (Chinese: 阿里巴巴), is a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology.
Investment thesis
First, there is the dreaded concern about the Variable Interest Entity (“VIE”) Structure, a structure of questionable legality. Almost every listed Chinese company you can buy outside of China is listed through a VIE structure and BABA is no exception.
6 Companies Owned by Alibaba.
What is the revenue of Alibaba?
Alibaba became one of the most valuable tech companies in the world after raising $25 billion from its U.S. IPO. It is also one of the most valuable Chinese public companies, ranking among some of the country's state-owned enterprises.
April 11 (Reuters) - Daily Journal Corp (DJCO. O), the publishing and software company where Warren Buffett's business partner Charlie Munger helps oversee investments and until recently was chairman, on Monday said it halved its investment in Chinese e-commerce giant Alibaba Group Holding Ltd .
Alibaba Group Holding Ltd. fell on Monday amid escalating concerns that the stock may be booted off American stock exchanges for failing to comply with US disclosure rules. The e-commerce giant's shares declined 3.8% in Hong Kong to lead a drop in the Hang Seng Tech Index, which closed down 0.2%.
Alibaba is smaller than Amazon, but it's only growing a slightly faster rate. Alibaba's revenue rose 41% in fiscal 2021 (which ended in March), or just 32% after excluding its takeover of the hypermarket operator Sun Art. Alibaba expects its revenue to rise 20% to 23% in fiscal 2022.
Summary. Charlie Munger sold half of its stake in Chinese e-Commerce firm Alibaba, according to a new 13F filing. Alibaba's e-Commerce brands provide a strong base for account and revenue growth going forward. Alibaba is generating new growth with investments in its cloud business.
Despite the slight drop in his value, he's still one of the top five richest people in China, behind Ma Huateng, founder of tech giant Tencent. Asides from his work in tech, he also founded the Jack Ma Foundation in 2014, and he has a stake in the Chinese media company Huayi Brothers.
Alibaba Group founder Jack Ma, largely out of public view since a regulatory clampdown started on his business empire late last year, is currently in Hong Kong and has met business associates in recent days, two sources told Reuters.
Why Shares of Alibaba, JD.com, and Yatsen Are Rising Today. Shares of several Chinese stocks rose this morning as the Chinese government continued to make efforts to bolster the economy. Shares of the large Chinese e-commerce company Alibaba Group Holding (NYSE: BABA) traded more than 3% higher as of 9:51 a.m. ET today ...
How much money did Yahoo make on Alibaba?
Mayer blamed shortsighted activist investors for pressuring the company to do the deal. Yahoo sold half of its 40% stake in Alibaba for $7.6 billion in 2012. Yahoo obtained the entire stake for $1 billion in 2005.
Son bought into Alibaba for $20 million in 2000 and the Chinese firm's growth to become one of the world's biggest e-commerce companies helped burnish his tech investor credentials.
SoftBank Group Corp's trailing 12-month revenue is $45.0 billion with a -89.7% profit margin. Year-over-year quarterly sales growth most recently was 6.3%. Analysts expect adjusted earnings to reach $1099.500 per share for the current fiscal year. SoftBank Group Corp currently has a 0.9% dividend yield.
SoftBank has a heavy exposure to China through its investments in e-commerce giant Alibaba and ride-hailing company Didi. Both companies have seen sharp falls in their share prices due to Beijing's sweeping crackdown of the domestic technology sector and tighter regulation in areas from data protection to antitrust.
