SoftBank piles $3.9 billion into surging market giants including Tesla, Netflix, and Amazon

ReutersFILE PHOTO: Japan’s SoftBank Group Corp Chief Executive Masayoshi Son attends a news conference in Tokyo, Japan
  • SoftBank’s new asset management unit sank nearly $US3.9 billion into some of the world’s most popular tech stocks, according to an SEC filing published Monday.
  • The Japanese conglomerate opened a $US1.04 billion stake in Amazon, a $US475 million position in Alphabet, and a $US189 million stake in Netflix, among other market favourites.
  • The investments differ from SoftBank’s previous strategy of investing in private startups. The company plans to invest at least $US10 billion in stocks through its new arm,Bloomberg reported.
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SoftBank’s new asset management business has invested nearly $US3.9 billion across some of the world’s most popular stocks, according to a Securities and Exchange Commission filing published Monday.

The company opened positions in Amazon, Tesla, Alphabet, and Netflix shares, among other market giants, in its first set of purchases. SoftBank founder Masayoshi Son revealed the new asset management unit in an August 11 earnings call as part of his strategy to diversify investments in tech companies. The conglomerate previously focused on private companies over buying publicly traded stock.

SoftBank aims to invest more than $US10 billion in public companies, sources familiar with the plans told Bloomberg.

Here are the 10 largest purchases made by SoftBank’s new arm:

  1. Amazon:$US1.04 billion
  2. Alphabet:$US475 million
  3. Adobe:$US249 million
  4. Netflix:$US189 million
  5. Microsoft:$US183 million
  6. Nvidia:$US181 million
  7. Tesla:$US123 million
  8. Shopify:$US114 million
  9. PayPal:$US111 million
  10. DocuSign:$US109 million

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The Japanese conglomerate took smaller stakes in companies including Square,Spotify,Okta, and Zoom Video Communications, according to the filing. Son has said before that SoftBank holds positions in Facebook and Apple, but neither company was represented in Monday’s filing.

The new stakes follow a slew of costly missteps for the conglomerate. SoftBank had to delay the opening of its second Vision Fund after soured stakes in WeWork, Wag, and other startups slammed investors’ confidence in the company.

Since then, the fund has bolstered SoftBank’s bottom line after losing in the prior quarter. Vision Fund investments gained nearly $US300 billion yen ($US2.85 million) in the second quarter, according to the company’s latest earnings report. SoftBank also touted a one-time windfall of more than 1 trillion yen ($US9.5 billion) from its sale of Sprint and shares of T-Mobile.

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