N509FZ
Japan's SoftBank Group, Alibaba's biggest investor, has lost more than $22 billion in the value of its stake in the e-commerce giant.
The sharp decline in the share price of Alibaba (13.3% to $222 per share), in respect of which the Chinese authorities launched an antitrust investigation, has caused a decline in the price of the shares of SoftBank - by 4.6%, to $ 37.25 per share, reports Barrons.
SoftBank owns 24.9% of Alibaba worth about $ 143 billion, which is higher than the market capitalization of SoftBank itself of $ 135 billion. Alibaba shares fell by 13% in trading on Thursday on news of new claims from the Chinese authorities to the company, whose founder, billionaire Jack Ma fell into disgrace after criticizing restrictions by China's financial regulators.
The drop in Alibaba's share price sent the value of SoftBank's stake in the company down more than $22 billion, with SoftBank itself dropping 4.6% to $37.25 on Thursday. SoftBank founder Masayoshi Son invested $20 million in the young e-commerce company of his friend Jack Ma in 2000.
It may have been the best venture capital investment in SoftBank's history, the publication notes. SoftBank has been selling assets in 2020 to raise cash to buy back shares and pay down debt, including selling a small portion of Alibaba shares. SoftBank's shares have more than tripled in value since the spring, hitting a 20-year high in the US.
source: forbes.com
The sharp decline in the share price of Alibaba (13.3% to $222 per share), in respect of which the Chinese authorities launched an antitrust investigation, has caused a decline in the price of the shares of SoftBank - by 4.6%, to $ 37.25 per share, reports Barrons.
SoftBank owns 24.9% of Alibaba worth about $ 143 billion, which is higher than the market capitalization of SoftBank itself of $ 135 billion. Alibaba shares fell by 13% in trading on Thursday on news of new claims from the Chinese authorities to the company, whose founder, billionaire Jack Ma fell into disgrace after criticizing restrictions by China's financial regulators.
The drop in Alibaba's share price sent the value of SoftBank's stake in the company down more than $22 billion, with SoftBank itself dropping 4.6% to $37.25 on Thursday. SoftBank founder Masayoshi Son invested $20 million in the young e-commerce company of his friend Jack Ma in 2000.
It may have been the best venture capital investment in SoftBank's history, the publication notes. SoftBank has been selling assets in 2020 to raise cash to buy back shares and pay down debt, including selling a small portion of Alibaba shares. SoftBank's shares have more than tripled in value since the spring, hitting a 20-year high in the US.
source: forbes.com