Home News Tech

Almost everyone at SoftBank thinks going private is a bad idea

Bloomberg
Bloomberg10/5/2020 11:01 AM GMT+08  • 7 min read
Almost everyone at SoftBank thinks going private is a bad idea
Insiders say everyone except founder Masayoshi Son opposes the idea of taking Softbank private.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Inside SoftBank Group Corp., the idea of going private through a buyout has been discussed off and on for at least five years. Almost everyone except founder Masayoshi Son opposes it, people with direct knowledge of the matter said.

The reasons are substantial: No one has pulled off a buyout anywhere close to SoftBank’s US$130 billion ($177.1 billion) valuation, it’s not clear the company could raise the necessary financing and such a complex deal would prove a distraction for at least a year, the people said. Senior managers also worry that without public shareholders, it would be harder to keep Son’s wildest impulses in check, one person said.

That doesn’t mean a deal is out of the question. The Japanese conglomerate considered buying out shareholders and retreating from the public market again this year, the people said. Son has been frustrated that SoftBank’s market capitalization continues to fall far short of the value of his holdings, particularly Alibaba Group Holding Ltd.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.