Son personally lost $ 1.3 billion on SoftBank stock trading

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(Bloomberg) – Masayoshi Son said he personally made $ 1.3 billion on his company’s controversial stock and options investment program.

The loss of 150 billion yen for the founder of SoftBank Group Corp. came from his third-party stake in SB Northstar, SoftBank’s vehicle for investing in what he called “highly liquid listed stocks,” including Amazon.com Inc, Microsoft Corp. and Zoom Video Communications inc.

While the vehicle was intended to diversify SoftBank’s liquidity, investments in equity derivatives earned it the nickname “the Nasdaq whale” because of its market-shaking bets. Executives later said that betting didn’t even amount to being a “runner-up.”

Last November, Son was reportedly faced with questions about his personal investment in Northstar, with some pointing to potential corporate governance issues. People familiar with the matter said in December that SoftBank had started to scale back its strategy. Most of the large holdings in listed companies are no longer listed in SoftBank’s earnings, while today’s filing indicated that many of the more controversial derivatives bets were also being closed.

SoftBank Ends Options Bets After Investor Fallout

The deal was a washout for SoftBank as a whole, Son said at a briefing in Tokyo, as his investment came later. He added that the loss had not dissuaded him from continuing to bet with his money, with a personal investment in the company’s Latin American funds being announced today in addition to his investment in Vision Fund 2 – well that he added that he had not yet convinced other managers to invest their money.

“I have a lot of confidence,” he said. “I’m still going to take risks.

© 2021 Bloomberg LP


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