Softbank Group 4% Call 19.09.2029 ISIN XS1684385591

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SoftBank considers launching third Vision Fund - source

Japan's SoftBank Group Corp is considering launching a third Vision Fund, likely using its own capital, a source familiar with the matter said on Wednesday.
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SoftBank considers launching third Vision Fund - source
By Anirban Sen
and Sam Nussey


2 minute read

SoftBank Corp's logo is pictured at a news conference in Tokyo, Japan, February 4, 2021. REUTERS/Kim Kyung-Hoon
TOKYO, Sept 14 (Reuters) - Japan's SoftBank Group Corp (9984.T) is considering launching a third Vision Fund, likely using its own capital, a source familiar with the matter said on Wednesday.
The fund's size has not been finalised and will likely launch early next year if the Japanese tech conglomerate decides to proceed, the source said, adding that SoftBank is also considering boosting the size of its second Vision Fund.
The source, who requested anonymity as these discussions are confidential, cautioned that SoftBank's plans are subject to change and it could eventually decide not to launch a new fund.

SoftBank declined to comment.
SoftBank Chief Executive Masayoshi Son last month said he would restructure the Vision Fund investment arm after it reported a $50 billion loss in the six months through June, as the value of its portfolio slid.
SoftBank's first two Vision Funds have been hammered by a global tech rout and the underperformance of major investments such as office-sharing firm WeWork Inc (WE.N) and ride-hailing giant Didi Global Inc.

The tech conglomerate has radically scaled back investment activity and sold shares in e-commerce giant Alibaba (9988.HK), with executives targeting an initial public offering of chip designer Arm to raise further cash.
The Wall Street Journal first reported the plans for a potential third fund earlier on Wednesday.
Reporting by Sam Nussey in Tokyo and Anirban Sen in New York; Editing by Jason Neely, Bernadette Baum and Lisa Shumaker
Our Standards: The Thomson Reuters Trust Principles.
 
RPT-BREAKINGVIEWS-New SoftBank fund risks deepening governance mess
15/09/2022 02:04 - RSF
(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)
LONDON, Sept 14 (Reuters Breakingviews) - Who said SoftBank Group’s corporate governance SoftBank financial innovation fails at Greensill
couldn’t get any messier? The $62 billion conglomerate controlled by founder Masayoshi Son is considering opening a third version of its Vision Fund technology investment vehicle, per SoftBank Considers Launching a Third Vision Fund
the Wall Street Journal. The obvious question is why. A new one, like its predecessor fund, would likely use only SoftBank’s own balance sheet, according to the report. Why not simply add firepower to the $56 billion second fund?
One reason might be that Vision Fund 2’s heavy losses (news)
on startups such as instalment-payment app Klarna mean senior staff are unlikely to receive bumper performance payouts. Starting fresh would wipe the slate clean. Fellow late-stage tech investor Tiger Global faces a similar dilemma (news)
.

SoftBank shareholders, for their part, might prefer the company wring as much value as possible from Vision Fund 2 instead. The only good news for investors in the Japanese parent is that Vision Fund 3 would be investing, broadly speaking, at lower valuations than previous efforts, given the recent market slump. Divvying up the spoils between staff and shareholders looks messy, but it’s better than having no spoils at all. (By Liam Proud)

Follow @Breakingviews http://twitter.com/breakingviews on Twitter

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(Editing by Jeffrey Goldfarb and Oliver Taslic)
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UPDATE 1-UK PM Truss' administration seeks to persuade SoftBank to list Arm in London -FT
15/09/2022 23:06 - RSF
(Adds details of FT report, background)
Sept 15 (Reuters) - British Prime Minister Liz Truss' government will push for high-level talks with Japan's SoftBank Group Corp to persuade it to list British chip designer Arm Ltd in London, the Financial Times reported on Thursday.

SoftBank executives had begun to talk with British officials about the possibility of a dual listing, but were still most interested in pursuing a single listing in New York, according to the FT.

The new British government sees the chance to gain at least part of Arm's flotation as a “big and quick win” to show it was serious about the future of the City of London, the FT quoted one person familiar with the UK government’s plans as saying.

Truss' government will push to hold high-level talks after the official period of mourning for the queen ends next week, the newspaper added, citing officials familiar with the matter.

(Subscribe to read | Financial Times)
SoftBank's billionaire founder, Masayoshi Son, had told shareholders in June he was in favor of a U.S. listing as most of the British-based chip designer's clients are based there.

The FT in July reported that the Japanese group put its plan to list Arm's shares in London on hold because of the political turmoil in the UK following the collapse of former Prime Minister Boris Johnson's government.

Arm declined to comment while SoftBank and Downing Street did not immediately respond to requests for comment.



(Reporting by Rhea Binoy in Bengaluru Editing by Chris Reese and Matthew Lewis)
(([email protected];))
 
UPDATE 1-Kahoot shares rise 28% as General Atlantic buys Softbank's stake
Oggi 09:10 - RSF
(Adds share price)
OSLO, Sept 16 (Reuters) - Softbank said on Friday it had agreed to sell its 15% stake in Norwegian e-learning group Kahoot to U.S. private equity group General Atlantic FT BV.

Kahoot's share price surged 28% in early trade.

General Atlantic in a separate statement confirmed the deal to buy 73.5 million Kahoot shares, but did not disclose the transaction price.

Kahoot's share price had fallen by 63% year-to-date before Friday's announcement, closing at 17.17 Norwegian crowns on Thursday and valuing Softbank's 15% stake at 1.25 billion Norwegian crowns ($122.28 million).

The transaction will be completed in two tranches, with the first 9% being sold on or about Sept. 26 and the remaining 6.02% in the fourth quarter, "once applicable regulatory approval has been obtained by the purchaser", Softbank said.

J.P. Morgan served as financial advisor to General Atlantic.

($1 = 10.2227 Norwegian crowns)

(Reporting by Terje Solsvik, editing by Stine Jacobsen)
(([email protected]; +47 918 666 70; Reuters Messaging: [email protected]))
 
RPT-BREAKINGVIEWS-ByteDance pays to kick IPO can down the road
19/09/2022 14:40 - RSF
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)
HONG KONG, Sept 19 (Reuters Breakingviews) - ByteDance is dancing to a different tune to keep stakeholders happy. TikTok's Chinese parent is spending up to $3 billion (news)
to buy back shares at a price that values the company at around $300 billion. It's extending an employee stock incentive programme for another 10 years and expanding the share pool. Given its initial public offering looks stalled, both moves will help keep investors and employees onside.

Startups rarely have good reasons to splurge on buybacks.

But in this case backers including SoftBank and Sequoia Capital can hope ByteDance's repurchase plan puts a floor under its falling private-market valuation. Taking some money off the table now looks prudent, too. In addition to the current global stock rout and regulatory volatility in Beijing, the company also faces growing scrutiny https://www.nytimes.com/2022/09/14/technology/tiktok-china-senate.html
in Washington over data security at its short-video crown jewel, TikTok, which boasts 1 billion monthly users worldwide.

The company also needs to boost internal morale. ByteDance has laid off staff David Ortiz on LinkedIn: #tiktok #bytedance #layoffs #diverse #opentowork | 78 comments
as part of a broader restructuring effort that has seen it back off from once-enticing segments like video games and online education. With growth set to slow further this year, ByteDance is paying up to keep the music playing. (By Robyn Mak)
Follow @Breakingviews http://twitter.com/breakingviews on Twitter

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(Editing by Pete Sweeney and Katrina Hamlin)
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UPDATE 1-Samsung Elec's Lee says SoftBank's Son expected to visit Seoul when asked about Arm-media
Oggi 11:54 - RSF
(Adds details)
SEOUL, Sept 21 (Reuters) - Samsung Electronics Vice chairman Jay Y. Lee said on Wednesday that SoftBank Group Corp CEO Masayoshi Son is expected to visit Seoul next month when asked about British chip designer Arm Ltd, multiple South Korean media reported.

Son may "make a proposal," South Korean wire service News1 reported citing Lee, without elaborating.

Lee said this in answer to a press question about whether he met Arm executives during his recent visit to Britain, according to News1.

South Korean media have speculated Samsung may participate in a potential joint acquisition of a stake in Arm.

Samsung did not have an immediate comment on Wednesday.

British Prime Minister Liz Truss' government will push for high-level talks with SoftBank Group Corp to persuade it to list British chip designer Arm Ltd in London, the Financial Times reported last week. (news)



(Reporting by Joyce Lee and Heekyong Yang; editing by Jason Neely and Louise Heavens)
(([email protected];))
 
UPDATE 2-SoftBank looks to form a 'strategic alliance' between Arm and Samsung
22/09/2022 06:57 - RSF
(Writes through and changes media slug)
By Sam Nussey and Joyce Lee
TOKYO/SEOUL, Sept 22 (Reuters) - SoftBank Group Corp founder and CEO Masayoshi Son said on Thursday he plans to meet with Samsung Electronics to discuss a potential "strategic alliance" between the South Korean tech giant and chip designer Arm.

The billionaire will make his first visit to Seoul in three years. "I'd like to talk with Samsung about a strategic alliance with Arm," Son said in a statement.

The statement follows remarks by Samsung's Vice Chairman Jay Y. Lee, who was quoted as saying by newswire News1 that Son "may make a proposal" on a visit expected next month. Samsung declined to comment on the report.

SoftBank acquired Arm, whose technology powers Apple's iPhone and nearly all other smartphones, in 2016 for $32 billion. A subsequent proposed deal to sell Arm to Nvidia (NVDA.O) aroused industry opposition and foundered on regulatory hurdles, prompting SoftBank to outline plans for a U.S. listing of the Cambridge-based firm.

The visit comes amid speculation over the potential formation of an industry consortium to invest in Arm and ensure its neutrality.

"There needs to be someone in the middle mediating to bring various companies together into a consortium, and Son may be trying to play such a role," said Lee Min-hee, an analyst at BNK Investment & Securities.

"A potential proposal could be that companies interested in owning a part of Arm can enter in a pre-IPO placement at a lower price ahead of an IPO next year," he added.

Monetising Arm has become a primary preoccupation for executives at tech conglomerate SoftBank, which has booked a massive loss at its Vision Fund investment arm and sold down its stake in Alibaba Group Holding to raise cash.

Efforts to list the chip designer, however, come amid a dramatic decline in dealmaking with markets volatile due to soaring interest rates and Russia's invasion of Ukraine. The Philadelphia SE Semiconductor Index

An alliance with Arm could be a strategic fit for Samsung as the market leader in memory chips invests heavily to try to catch up with Taiwan Semiconductor Manufacturing Co in logic chips.

The South Korean conglomerate is still seen as hampered by technical limitations in original technology for non-memory chips such as application processor architecture, which Arm specialises in.

Other possible Arm suitors include Intel Corp (INTC.O), whose Chief Executive Pat Gelsinger in February expressed interest in joining a consortium to buy the chip designer.


Samsung rival SK Hynix has also expressed interest in Arm, according to Yonhap news agency. It quoted Vice Chairman Park Jung-ho as saying in March that the chipmaker was considering forming a consortium to buy Arm. The company said at the time that the comment did not refer to a specific plan.

Qualcomm Inc (QCOM.O), which has also been cited as a potential investor, is being sued by Arm, which accuses it of breaching license agreements and trademark infringement.

(news)

The discord could cast a shadow over an Arm listing, Redex Research analyst Kirk Boodry wrote in a note to clients.

"Arm probably needs all its customers onside to command a premium valuation," he said.

(Reporting by Sam Nussey in Tokyo and Joyce Lee in Seoul; Editing by Muralikumar Anantharaman and Edwina Gibbs)
(([email protected];))
 
UPDATE 1-India's Ola Electric ventures abroad, to enter Nepal next quarter
22/09/2022 14:18 - RSF
(Adds details, background)
BENGALURU, Sept 22 (Reuters) -
SoftBank Group-backed Ola is looking to take its e-scooters global, starting with Nepal, as it seeks to tap into a growing international market for electric vehicles
The company will expand further into Latin America, ASEAN and the European Union, it said in a statement on Thursday. It has signed a partnership agreement with CG Motors in Nepal to distribute its Ola S1 e-scooters.


Ola Electric, valued at $5 billion, has made inroads into India's EV market with over 80,000 electric scooters. The ride-hailing firm said last month it will start producing electric cars in 2024. (news)

"Ola is committed to creating the EV paradigm for the rest of the world by building half of the vehicles that the world needs right here in India," its Founder and Chief Executive Officer Bhavish Aggarwal said.

Ola had planned to go public in the first half of 2022, but has since postponed the plan, amid a volatility in the market and lackluster listings of some start-ups in India this year.


(Reporting by Ashish Chandra in Bengaluru; Editing by Dhanya Ann Thoppil)
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