Is more trouble waiting for SoftBank in this year?
By MYBRANDBOOK
It has reportedly been found out that Jack Ma who was a crucial board member of the SoftBank Group is about to step down from his position. Though Jack Ma has cited his increasing focus on philanthropic causes for his resignation, SoftBank Group moving forward without him will surely have to deal with a lot more turbulence now.
Jack Ma’s departure closely follows the resignation of Masayoshi Son’s another very trusted confidant Tadashi Yanai, founder and CEO of Uniqlo. He resigned from the SoftBank board after 18 years late last year to focus on his fashion business.
SoftBank began with a real rocky start this year wherein they first got sued by WeWork, the US office-sharing giant, for the breach of contract by backing out of a $3 billion rescue plan.
The company in the previous month of April, reported that they are going to be facing humongous losses for the financial year ended March 2020 which is also known as fiscal 2019. SoftBank Group is all set to incur a loss of $12.5 billion along with their Vision Fund incurring an even bigger loss of $16.5 billion. Masayoshi Son who is the CEO of the company, in a statement, said that this is the company’s first annual loss in 15 years.
It should also be noted that the sudden outbreak of the coronavirus pandemic which became the cause of the global economic downturn also contributed very heavily to SoftBank’s misfortunes. SoftBank invested close to $1.5 billion, last month had to furlough many of their employees both in India as well as in foreign countries to survive the virus. Japan, which is SoftBank’s home country, also fell into recession because of the pandemic.
The future of Vision Fund 2 is very bleak as well. Investors, who participated in the Vision Funds, are reportedly not at all pleased with how the first Vision Fund portfolio companies have been performing. In fact just to portray a viable and optimistic picture of the first Vision Fund, SoftBank Group had to infuse its own $2.5 billion worth of funds into new investments since October 2019.
Masayoshi Son mentioned that a second $4.7 billion tranche of share purchases, which is part of the March announced $41 billion buyback programme, has been approved by the board. Along with this, at the end of April, the company has also bought back more than 250 billion yen of its shares.
BREAKING NEWS
TECHNO TRENDS
Legal Battle Over IT Act Intensifies Amid Musk’s India Plans
The outcome of the legal dispute between X Corp and the Indian government c...
Wipro inks 10-year deal with Phoenix Group's ReAssure UK worth
The agreement, executed through Wipro and its 100% subsidiary,...
Centre announces that DPDP Rules nearing Finalisation by April
The government seeks to refine the rules for robust data protection, ensuri...
Home Ministry cracks down on PoS agents in digital arrest scam
Digital arrest scams are a growing cybercrime where victims are coerced or ...
E-Magazine
TECHNOTAINMENT
Hrithik Roshan to endorse RuPay as Brand Ambassador
RuPay is reportedly planning to feature Bollywood superstar Hrithik Rosha
India Today Group launches – AI Pop Stars
Staying true to our industry leadership position in using cutting-edge tech
MOVERS & SHAKERS
TelioLabs ropes in Phaniraj V A as the Group CEO
TelioLabs has announced the onboarding of Phaniraj V A as its new Group CE
Wipro Appoints Amit Kumar as Managing Partner and Global Head
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology s
OPEN YOUR EYES
INTERVIEWS
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
Alcatel-Lucent Enterprise Carrying a 100 year legacy ahead
A good amount of R&D works and global support services are operated out of
HOT PICK
MSI Announces the availability of RTX 50 series of laptops in
MSI, the innovative computing manufacturer in gaming, creator
Nothing Phone (3a) goes on sale today, starting at Rs 19,999
The phone was launched on March 4, featuring a 50MP main, ultra-wide, and t
MAKE IN INDIA BRANDS
TEJAS NETWORKS INDIA PVT. LTD.
HIMACHAL FUTURISTIC COMMUNICATIONS LTD.
NUMERIC INDIA, A Group Brand Legrand
LAVA INTERNATIONAL LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : SRIDHAR VEMBU
Sridhar Vembu is the chief executive officer (CEO) of Zoho Corporation...
ICONS OF INDIA : SANDIP PATEL
Sandip Patel is the Managing Director for IBM India & South Asia regio...
ICONS OF INDIA : SANJAY NAYAR
Sanjay Nayar is a senior finance professional in the Indian private in...
PARTNER SPEAKERS
PSU
ITI - ITI Limited
ITI Limited is a leading provider of telecommunications equipment, sol...
GSTN - Goods and Services Tax Network
GSTN provides shared IT infrastructure and service to both central and...
C-DOT - Center of Development of Telematics
India’s premier research and development center focused on telecommu...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Vinod Dham, Founder & Executive Managing Partner, IndoUS Venture Partners
Vinod Dham, known as the “Father of the Pentium Chip,” has left an...
Indian Tech Talent Excelling The Tech World - Lal Karsanbhai, President & CEO, Emerson
Lal Karsanbhai, President and CEO of Emerson, assumed the leadership i...
Indian Tech Talent Excelling The Tech World - Sundar Pichai, CEO- Alphabet Inc.
Sundar Pichai, the CEO of Google and its parent company Alphabet Inc.,...
ITFORUM 2025
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
of images belongs to the respective copyright holders
