SoftBank is reportedly selling almost all of its remaining shares in Alibaba, limiting its exposure to China and raising cash as its tech investments take a hit in a market downturn.
The Japanese group has sold about $7.2 billion worth of Alibaba shares this year, after selling a record $29 billion last year, according to the Financial Times.
The sale will eventually cut SoftBank’s stake to just 3.8%, according to regulatory filings.
FOX Business has reached out to Softbank for comment.
The logo of Alibaba Group is lit up at its office building in Beijing, China. (REUTERS/Tingshu Wang / Reuters)
The Japanese investor, led by billionaire founder Masayoshi Son, once owned as much as 34% of Alibaba.
At the end of February, SoftBank had only 98 million shares of Alibaba left to sell, according to the FT’s estimates.
The move by Softbank comes as the company plans a major listing of UK chip designer Arm as it seeks to recover from a series of failed investments and unprecedented losses.
SoftBank Group Corp Chairman and CEO Masayoshi Son. ( REUTERS/Toru Hanai / Reuters Photos)
The longtime investor is pulling back from Alibaba as the tech company is in the midst of a reorganization preparing to split into six separate entities.
Son bought into Alibaba more than two decades ago with a $20 million investment after meeting founder Jack Ma.
Ma’s history of speaking his mind turned into a liability in October 2020 when he criticized China’s state-owned banks at a financial summit in Shanghai.
Jack Ma, billionaire founder of Alibaba Group. (REUTERS/Charles Platiau/File Photo/File Photo/File Photo / Reuters Photos)
Beijing then suspended the blockbuster IPO of Alibaba’s sister company Ant, as President Xi Jinping launched a campaign to rein in the country’s tech groups.
Since then, Alibaba’s share price has fallen 70%.
Alibaba shares closed in New York on Wednesday at $93.84.
They once traded at $317 per share.