$4.8B buyback does little to stop SoftBank’s fall

Activist investor Elliott Management pushed for repurchase of an even greater amount of shares

TRD NATIONAL /
Mar.March 13, 2020 01:00 PM
Masayoshi Son (Credit: Tomohiro Ohsumi/Getty Images, iStock)

Masayoshi Son (Credit: Tomohiro Ohsumi/Getty Images, iStock)

SoftBank is set to buy back $4.8 billion in shares amid demands from an activist investor and a volatile stock market.

The buyback would represent 7 percent of the Japanese conglomerate’s shares, which have been plummeting. The WeWork parent has come under fire recently for its handling of the beleaguered co-working firm’s botched public offering last year. The $4.8 billion buyback is a fraction of the $20 billion activist investor Elliott Management initially pushed for, the Wall Street Journal reported.

SoftBank Chief Executive Masayoshi Son has said that he is open to more buybacks, “when the finances allow it.”

Despite announcing the buyback plan, the conglomerate’s stocks continued to fall, and were 6.9 percent lower at the end of morning trading. Still, it fared slightly better than Japan’s benchmark Nikkei 225 index, which was down 8 percent.

SoftBank recently put the brakes on its second Vision Fund, under pressure from investors to provide better results from SoftBank’s first $100 billion Vision Fund. WeWork as well as real estate brokerage Compass, which just laid off dozens of workers, received billions in funding from the first Vision Fund.

[WSJ] — Georgia Kromrei


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)

Another head rolls at WeWork

Another head rolls at WeWork
Maximus’ Robert Rosania and Former WeWork CEO Adam Neumann (Credit: Kevin Hagen/Getty Images; Ambrosetti)

WeWork sued for backing out of San Francisco development deal

WeWork sued for backing out of San Francisco development deal
IBM CEO Arvind Krishnam and 88 University Place (Google  Maps, IBM)

IBM to leave WeWork’s 88 University Place

IBM to leave WeWork’s 88 University Place
Frederick Arnold, formerly of Convergex and Alex Dimitrief, formerly of General Electric (Getty, Twitter Navient)

Tensions brew on WeWork’s board with appointment of new members

Tensions brew on WeWork’s board with appointment of new members
Softbank's Marcelo Claure, Masayoshi Son and Rajeev Misra (Getty; iStock)

Internal feud at SoftBank casts doubt on Vision Fund

Internal feud at SoftBank casts doubt on Vision Fund
Sara Patterson and Compass CEO Robert Reffkin (Credit: Getty Images)

Compass’ chief people officer is out

Compass’ chief people officer is out
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...