SoftBank Unveils $3.4 Billion Buyback

Aug 7, 2024 thejournalbiz

SoftBank Group Corp. announced a buyback of as much as ¥500 billion ($3.4 billion), an outlay that still leaves founder Masayoshi Son with a substantial pile of cash as he gears up to make more aggressive investments.

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@SoftBank announced a buyback of as much as $3.4 billion Bloomberg reports.#softbank #ai #shares pic.twitter.com/YsCwJNuT5E

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The Tokyo-based technology investor said it would buy up to 6.8% of its free-floating outstanding shares through August 7 of next year.

The announcement came after activist investor Elliott Investment Management built a sizable stake in SoftBank this year and pushed for a $15 billion buyback.

The outlay comes as Chief Executive Officer Son is preparing for what appears to be a large-scale push into artificial intelligence and semiconductor investments. SoftBank has built up an enormous cash pile and the value of its assets excluding debt has soared with the share price of its chip affiliate Arm Holdings Plc.

Goto said it’s time for SoftBank to get more aggressive, given the company’s net asset value has surged to ¥35.3 trillion. Its loan-to-asset value has also dropped to a low 7.8%, far below its historic 25% target. The company will deploy its funds in areas such as AI chips, data centers, and robots, he said, adding that Arm and its chip designs will be at the center of that investment push.