In CNBC’s article “SoftBank Swings Back to Gains at Vision Fund Tech Arm, Announces Up to $3.4 Billion Share Buyback,” Arjun Kharpal quotes SoftBank finance chief Yoshimitsu Goto saying, “We have made our own decision after discussions at the board level. So we are not a company that has made a decision after impact from somebody else,” In SoftBank Group’s fiscal first quarter ending in June, the company made a notable comeback, reporting a 1.9 billion yen ($12.9 million) gain from its Vision Fund. This gain was key in turning around profitability after a tough period. The positive results came mainly from successful investments in major Chinese companies like ByteDance, the owner of TikTok. However, the Vision Fund overall still faced a large loss of 204.3 billion yen for the quarter, a big drop from the previous year’s profit. This loss highlights ongoing issues such as high administrative costs and mixed results from other investors.
SoftBank also announced a big share buyback program, aiming to repurchase up to 6.8% of its outstanding shares, worth 500 billion yen ($3.4 billion). This move is intended to address shareholder concerns that the company’s market value doesn’t reflect its true asset value. The buyback is part of a larger plan to increase shareholder value and stabilize the stock price, which recently dropped 19% in a single day due to economic uncertainties and market volatility.
Overall, SoftBank’s financial performance for the quarter improved, with net sales rising by 9.3% year-on-year to 1.7 trillion yen and net profit hitting 10.5 billion yen, reversing last year’s large loss. The company has benefited greatly from investments in Alibaba and T-Mobile, showing its focus on high-growth areas like artificial intelligence. Despite past challenges and market ups and downs, SoftBank is concentrating on using its investments in AI and advanced technologies to drive future growth and strengthen its market position.
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