SoftBank Group
SoftBank Group Corp. is a Japanese multinational investment holding company founded on September 3, 1981, by Masayoshi Son as a software distributor and headquartered at 1-7-1 Kaigan, Minato-ku, Tokyo.[1][2] Under Son's continued leadership as chairman and CEO, the firm has evolved into a conglomerate focused on strategic investments in technology-driven enterprises, particularly artificial intelligence and frontier technologies, while maintaining ownership of SoftBank Corp., Japan's third-largest mobile telecommunications provider.[3][4] Its net asset value stood at 17,892 yen per share as of recent corporate data, with consolidated operations employing over 67,000 people.[5] Initially centered on distributing packaged software in Japan after Son's exposure to computing during U.S. studies, SoftBank expanded into publishing, broadband services, and e-commerce partnerships, notably with Yahoo in the 1990s.[2] The company's pivot to telecommunications came in 2006 through the acquisition of Vodafone Japan, rebranded as SoftBank Mobile, which solidified its domestic wireless market position amid fierce competition from NTT Docomo and KDDI.[6] This telecom arm now provides mobile, fixed-line, and broadband services, contributing stable revenue amid the group's volatile investment activities.[6] SoftBank's defining characteristic is its aggressive, long-horizon investment strategy, exemplified by the SoftBank Vision Funds launched in 2017, which have committed tens of billions to over 250 high-growth tech firms globally, including stakes in Arm Holdings, ByteDance, and Nvidia.[4][7] Backed initially by sovereign wealth from Saudi Arabia and the UAE, the funds target exponential returns from AI and automation, yielding successes like early Alibaba investments that generated trillions in yen value, though portfolio fair value fluctuations have driven quarterly gains as high as $4.8 billion alongside multi-billion-dollar writedowns during market corrections.[7][8] Notable controversies stem from overvalued bets on unproven startups, such as WeWork and Uber, contributing to Vision Fund losses exceeding $32 billion in the fiscal year ending March 2023 and a $20 billion swing in the prior year, prompting scrutiny of Son's risk-tolerant approach amid broader tech valuation resets.[9][10] These setbacks, while empirically tied to specific deal overoptimism rather than systemic flaws in the AI thesis, have tested investor confidence, yet SoftBank's structure as a holding company allows insulation of core assets like Arm from such volatility.[11]History
Founding and Early Software Distribution (1981–1994)
Masayoshi Son founded Nihon SoftBank in September 1981 at age 24, establishing the company as a wholesaler and distributor of packaged personal computer software in Japan. Inspired by the potential of microchips observed during his studies at the University of California, Berkeley, Son aimed to capitalize on the nascent PC market dominated by systems like NEC's PC-98 series. Starting with minimal operations and two part-time employees, the firm secured exclusive distribution contracts with key partners such as Joshin Denki Co. and Hudson Soft, enabling rapid initial growth from monthly sales of $10,000 to $2.3 million by the end of its first year.[2][12] By 1983, Nihon SoftBank had expanded its network to over 200 dealer outlets across Japan, solidifying its position as a leading software distributor amid rising demand for PC peripherals and applications. The company's focus on efficient supply chain logistics and partnerships with U.S. software developers allowed it to import and distribute titles that were scarce in the domestic market, contributing to its dominance in a sector previously underserved by traditional electronics wholesalers. This period marked the foundation of SoftBank's reputation for aggressive market penetration, with annual revenues climbing steadily through the mid-1980s as personal computing adoption accelerated in corporate and hobbyist segments.[12] In May 1982, the company diversified into publishing by launching Oh! PC, a monthly magazine dedicated to NEC computers, and Oh! MZ for Sharp systems, targeting engineers and manufacturers with technical content. These publications quickly gained traction, with Oh! PC achieving a circulation of 140,000 copies per issue by 1989, supplemented by revamped editions and additional titles that collectively made SoftBank Japan's largest publisher of computer periodicals. By the late 1980s, the firm had expanded its portfolio to include over 20 magazines and more than 300 computing books, generating synergistic revenue streams that reinforced its software distribution core while building brand authority in the tech ecosystem. In 1989, it further bolstered this segment by introducing the Japanese edition of PC Magazine.[2][12] In July 1990, Nihon SoftBank rebranded to SoftBank Corp. to signal ambitions for broader, international operations. This transition preceded its public listing, with shares beginning over-the-counter trading in Japan in July 1994, raising approximately 20 billion yen (about $200 million) to fund future acquisitions and expansions. By this point, SoftBank had established itself as Japan's preeminent player in PC software distribution and tech publishing, with a valuation reaching $3 billion upon going public, setting the stage for ventures beyond domestic software channels.[2][12]Entry into Broadband and Telecom (1995–2000)
In the mid-1990s, SoftBank shifted strategic emphasis toward internet infrastructure and services, initiating its foray into sectors enabling broadband delivery. This transition built on the company's software distribution expertise, leveraging investments in digital content and access technologies amid Japan's nascent online economy. By 1995, SoftBank had acquired significant stakes in U.S. tech assets, including a 5% share in Yahoo! Inc., signaling intent to import and adapt high-growth internet models domestically.[13] A pivotal development occurred on April 1, 1996, when SoftBank formed Yahoo! Japan Corporation through a joint venture with Yahoo! Inc., investing approximately ¥1.06 billion (about $10 million at the time) for a 34% stake. This portal provided search, email, and community features over dial-up connections, capturing early web traffic and establishing SoftBank as Japan's leading internet service aggregator, handling up to 85% of domestic online access by the late 1990s. The venture's success, with user growth exceeding 10 million by 2000, underscored SoftBank's role in popularizing internet adoption, which relied on improving telecom bandwidth.[2][14] SoftBank's internet pivot extended to e-commerce and media, with launches like the Ziff-Davis subsidiary in 1999 for tech publishing and online content, further integrating software distribution with network-dependent services. These efforts positioned the company to capitalize on bandwidth constraints in Japan's telecom market, dominated by NTT's slower dial-up infrastructure. By fostering demand for faster access, SoftBank indirectly pressured telecom evolution, though direct fixed-line operations remained absent until later acquisitions.[12] In May 2000, SoftBank established BB Technologies Corporation as a dedicated unit for broadband development, investing in ADSL technology to deliver speeds up to 12 Mbps—far surpassing dial-up's 56 kbps limits. This subsidiary targeted mass-market rollout, pricing services aggressively to disrupt incumbents like NTT, with preparations including partnerships for nationwide line provisioning. The initiative reflected Masayoshi Son's foresight on broadband's transformative potential, drawing from U.S. trends like cable modem trials, though Japan's regulatory hurdles delayed full deployment until 2001. By year-end 2000, SoftBank's market capitalization had swelled to over ¥20 trillion, fueled by dot-com optimism and telecom-adjacent bets.[15][16]Dot-Com Investments and Global Expansion (2001–2009)
The dot-com bust severely impacted SoftBank, with its market capitalization plummeting approximately 99% from its peak, reducing from around $180 billion to under $2 billion by early 2001, amid widespread write-offs of investments in failed ventures such as Webvan and Kozmo.com.[17][18] The company reported a $6.5 billion loss in the third quarter of fiscal year 2001 alone, pushing it to the brink of bankruptcy as Masayoshi Son personally lost an estimated $70 billion in net worth.[18][19] To avert collapse, Son pledged personal assets and shifted strategy toward operational businesses with immediate revenue potential, while preserving select high-conviction holdings from the bubble era. A pivotal recovery came through the expansion of broadband services, with SoftBank launching Yahoo! BB in September 2001 via subsidiary BB Technologies Corporation, offering ADSL access at aggressively low prices of ¥1,580 per month for the first three months.[2] This initiative rapidly scaled, achieving over 2 million subscribers by mid-2002 and becoming Japan's largest broadband provider within two years, with 4.426 million users by August 2004, generating essential cash flows that offset investment losses and stabilized finances.[20][21] Complementing this, SoftBank retained its $20 million stake in Alibaba Group from 2000, which appreciated as the Chinese e-commerce firm expanded domestically and internationally during the mid-2000s, culminating in Yahoo's $1 billion investment for a 40% stake in Alibaba in August 2005, indirectly validating SoftBank's position as a major shareholder.[22][23] Global expansion accelerated through strategic acquisitions and identity rebranding, including the full acquisition of Japan Telecom Co., Ltd. in July 2004 for approximately ¥1.1 trillion, which bolstered fixed-line infrastructure supporting internet growth and provided data services with some international connectivity.[2] In December 2004, SoftBank introduced a new corporate identity featuring a double-line logo and silver branding to signal broader ambitions beyond Japan.[2] These moves, alongside the Alibaba bet's maturation into a cornerstone asset—valued at billions by decade's end—repositioned SoftBank as a hybrid investment and operating entity, though many post-bust venture bets via SoftBank Capital continued to yield mixed results amid a cautious global tech environment.[24][25]Mobile Acquisitions and Consolidation (2010–2016)
In October 2010, SoftBank agreed to acquire a 100% stake in Willcom Inc., a Japanese provider of Personal Handy-phone System (PHS) services that had entered civil rehabilitation proceedings due to financial distress, primarily to gain access to its underutilized 2.5 GHz spectrum holdings valuable for next-generation mobile broadband deployment.[26] The transaction completed on December 21, 2010, through a company split and capital restructuring under Willcom's rehabilitation plan, with SoftBank canceling existing Willcom shares and issuing new ones to itself, effectively absorbing the distressed assets without significant upfront cash outlay beyond prior investments.[27] This move bolstered SoftBank's spectrum portfolio amid intensifying competition in Japan's mobile market, where it trailed leader NTT Docomo in subscriber base, enabling future LTE expansions using the acquired frequencies. By July 1, 2013, SoftBank formalized Willcom's integration as a wholly owned subsidiary, aligning its operations with SoftBank Mobile to rationalize overlapping services and accelerate 4G network rollout.[28] Willcom's rebranded wireless division, launched as Y!mobile in 2014, targeted budget-conscious users with low-cost plans leveraging the 2.5 GHz band, helping SoftBank capture additional market share from rivals. This domestic consolidation reflected SoftBank's strategy to consolidate fragmented assets for cost efficiencies and spectrum optimization, as Japan's telecom sector faced pressure from data-intensive usage growth post-smartphone adoption. Parallel to Japanese efforts, SoftBank expanded internationally by announcing on October 15, 2012, a $20.1 billion investment for approximately 70% ownership of Sprint Nextel Corp., the third-largest U.S. wireless carrier, aiming to leverage Sprint's 4G infrastructure and subscriber base of over 50 million for global synergies in device procurement and technology sharing.[29] The deal, revised to $21.6 billion amid regulatory scrutiny, closed on July 11, 2013, following U.S. Federal Communications Commission approval on July 6, granting SoftBank about 78% economic interest while retaining Sprint's operational independence under CEO Dan Hesse.[30] This acquisition marked SoftBank's bold entry into the U.S. market, driven by Masayoshi Son's vision of cross-border scale to challenge dominant carriers like Verizon and AT&T, though it introduced integration challenges including cultural differences and regulatory hurdles. To further streamline domestic operations, SoftBank executed a merger on April 1, 2015, absorbing SoftBank BB Corp. (broadband), SoftBank Telecom Corp. (enterprise services), and Y!mobile Corporation into SoftBank Mobile Corp., creating a unified entity under the SoftBank brand to reduce redundancies and enhance competitiveness against NTT Docomo and KDDI.[31] The consolidation, which included migrating Y!mobile's ~5 million subscribers to SoftBank's network, supported aggressive pricing and network investments, contributing to SoftBank's subscriber growth to over 40 million in Japan by 2016 while positioning the group for 5G preparations. These moves exemplified SoftBank's aggressive consolidation tactics to fortify its telecom core amid maturing markets and rising capital demands for infrastructure.Launch of Vision Funds and Mega-Deals (2017–2018)
In 2016, SoftBank Group Corp. announced plans to establish the SoftBank Vision Fund, a $100 billion technology investment vehicle aimed at accelerating innovation in artificial intelligence, robotics, and related fields, with initial commitments including $45 billion from Saudi Arabia's Public Investment Fund (PIF) to be disbursed over five years, $25 billion from SoftBank itself, and additional pledges from investors such as the UAE's Mubadala Investment Company.[32] Masayoshi Son, SoftBank's founder and CEO, positioned the fund as a means to support the "information revolution," drawing on his prior successes in semiconductor and mobile investments while targeting late-stage private companies with potential for massive scale.[33] The fund was managed by SoftBank Investment Advisers, a subsidiary based in London, with a structure allowing for majority or minority stakes in global tech firms, diverging from traditional venture capital by emphasizing outsized bets rather than diversified small positions.[34] The Vision Fund's first major close occurred on May 20, 2017, securing over $93 billion in committed capital from limited partners including Apple ($1 billion), Qualcomm ($1 billion), Foxconn, Sharp, and others, surpassing initial targets and enabling immediate deployment.[35] [36] By early 2018, the fund had deployed more than $35 billion across dozens of deals, focusing on high-growth sectors like ride-hailing, co-working, and e-commerce, often leading funding rounds with checks in the hundreds of millions to billions.[37] This aggressive pace reflected Son's thesis that concentrated capital could compress development timelines for transformative technologies, though it also introduced risks of overvaluation in frothy markets.[38] Key mega-deals in this period included an August 2017 investment of $4.4 billion in WeWork, valuing the co-working startup at $20 billion post-money and granting SoftBank a significant ownership stake to fuel global expansion.[39] In January 2018, the Vision Fund participated in a $1.25 billion tender offer for Uber Technologies shares, acquiring an approximately 17% stake amid the company's governance turmoil, as part of a broader $9 billion commitment that bolstered SoftBank's influence over the ride-hailing leader.[39] Other notable 2018 outlays encompassed $2 billion in South Korean e-commerce firm Coupang to support logistics buildup and $800 million in Indian hotel aggregator Oyo Rooms, pushing its valuation above $3 billion and exemplifying the fund's appetite for emerging-market disruptors.[40] These transactions, often syndicated with other investors, marked a shift toward "mega-VC" where single funds could dictate terms and valuations, reshaping startup financing dynamics.[34]Pandemic Challenges and Portfolio Restructuring (2019–2021)
In late 2019, SoftBank Group's Vision Fund faced severe setbacks from its heavy investment in WeWork, which peaked at a $47 billion private valuation earlier that year but collapsed during a failed initial public offering in October due to revelations of unsustainable losses and governance issues.[41][42] SoftBank, having committed over $10 billion to WeWork, provided a $9.5 billion bailout package that granted it majority control, while CEO Masayoshi Son publicly described the investment as a "lapse in judgment" and a "harsh lesson."[43][44] This contributed to a $6.5 billion quarterly loss for SoftBank in November 2019, primarily from write-downs on WeWork and Uber stakes, exposing vulnerabilities in the Vision Fund's aggressive valuation practices amid a cooling market for unprofitable startups.[42] The COVID-19 pandemic intensified these pressures in 2020, triggering a sharp decline in startup valuations and operational disruptions for portfolio companies reliant on physical spaces and consumer spending.[45] The Vision Fund recorded $17 billion in losses for the fiscal year ended March 31, 2020, followed by a record $13 billion operating loss in the subsequent quarter from further markdowns on holdings like WeWork and Uber.[46][45] SoftBank also warned of over $9.6 billion in additional write-downs on non-Vision Fund investments directly attributable to pandemic effects.[47] By May 2020, SoftBank revalued WeWork at just $2.9 billion—down over 90% from its peak—with Son labeling the original bet "foolish" and acknowledging failures in due diligence.[48] To address mounting debt exceeding $200 billion and eroding investor confidence, SoftBank launched a comprehensive restructuring in March 2020, authorizing up to ¥4.5 trillion ($41 billion) in asset sales or monetizations to fund share buybacks and reduce leverage.[49][50] This included a $14 billion sale of over one million shares in its domestic telecom subsidiary SoftBank Corp. in August 2020, alongside plans to divest stakes in mature holdings like Alibaba.[51][52] These moves temporarily boosted reported profits to a record $12 billion in the June 2020 quarter, primarily from gains on sales rather than underlying portfolio performance, signaling a pivot from expansion to defensive capital preservation.[52] Into 2021, the strategy continued with selective exits, though Vision Fund losses persisted amid broader market volatility, underscoring the causal link between over-leveraged bets on high-growth tech and vulnerability to economic shocks.[45]AI Pivot and Recovery (2022–Present)
In the wake of record losses at the SoftBank Vision Fund totaling 3.5 trillion yen in fiscal year 2022, primarily from underperforming portfolio companies amid a tech market downturn, SoftBank Group adopted a defensive investment stance under CEO Masayoshi Son, sharply reducing new commitments and prioritizing capital preservation.[53] This period marked a strategic inflection, with Son publicly articulating a pivot to artificial intelligence as the core driver of future growth, framing it as an impending "AI industrial revolution" and committing SoftBank to leadership in artificial superintelligence (ASI) through infrastructure, chips, and foundational models.[54] The shift emphasized leveraging SoftBank's ownership of Arm Holdings, whose architecture underpins efficient computing essential for AI training and inference, over diversified venture bets.[55] A pivotal catalyst emerged with Arm Holdings' initial public offering on September 14, 2023, which valued the chip designer at $54 billion at debut and saw shares more than double within months, fueled by surging demand for Arm-based processors in AI servers, edge devices, and data centers from clients like Nvidia and hyperscalers.[56] SoftBank, retaining about 90% ownership post-IPO, benefited from valuation gains exceeding $50 billion, bolstering its balance sheet and restoring investor confidence.[57] Complementing this, SoftBank ramped up direct AI investments, including a March 31, 2025, agreement for up to $40 billion in follow-on funding to OpenAI to scale generative AI models and projects like the $500 billion Stargate supercomputer initiative aimed at exascale computing.[58] The Vision Fund, meanwhile, streamlined operations by cutting nearly 20% of its global staff—over 50 roles—in September 2025, reallocating resources to high-conviction AI deployments rather than broad startup funding.[59] This AI-centric realignment drove financial recovery, with SoftBank posting a net profit of 429 billion yen ($2.87 billion) in the first quarter of fiscal 2025 ended June 30, reversing prior deficits through unrealized gains on AI-linked holdings like Nvidia and Arm, alongside disciplined cost controls.[60] Shares reached a 24-year high in July 2024 and continued ascending, propelling Son's net worth above peers and reclaiming his position as Japan's wealthiest individual by August 2025.[61] Further bolstering the portfolio, SoftBank acquired ABB's robotics division on October 8, 2025, for 725 billion yen ($5.4 billion), targeting embodied AI applications in automation and logistics to integrate with its semiconductor and cloud assets.[62] By fiscal year-end March 2025, these moves had positioned SoftBank to advance as a provider of ASI-enabling infrastructure, with Vision Fund cumulative gains turning positive since inception.[63]Leadership and Governance
Masayoshi Son's Vision and Decision-Making
Masayoshi Son, founder and chairman of SoftBank Group, has articulated a long-term vision centered on leveraging the "Information Revolution" to enhance human happiness by reducing sorrow—such as loneliness and mortality—and amplifying joy through technological advancement. Introduced at SoftBank's 2010 annual general meeting on the company's 30th anniversary, this framework encompasses a 300-year plan aimed at establishing SoftBank as the corporate group most essential to global society by digitally sharing wisdom and knowledge to foster fulfilling lives. The plan draws from consultations with approximately 20,000 employees and over 2,500 social media users identifying core human needs, emphasizing services that address emotional voids rather than mere products or profits.[64] In recent iterations, Son has pivoted the vision toward achieving Artificial Super Intelligence (ASI)—defined as intelligence 10,000 times superior to the human brain—within roughly 10 years to propel humanity's evolution, enabling applications like intelligent robots for manufacturing and transportation. This builds on SoftBank's foundational philosophy of "Happiness for everyone" through iterative means, from early broadband to contemporary AI, while maximizing net asset value via unique business evolution and value multiplication. Son positions SoftBank not as a solitary actor but as a collaborator, leveraging assets like Arm Holdings' semiconductor technology to realize ASI's potential for transcending current artificial general intelligence limits.[65] Son's decision-making reflects a high-conviction, trend-oriented philosophy prioritizing long-term disruptive potential over short-term profitability, often manifesting in concentrated "bold bets" on visionary founders and technologies. Notable examples include a $20 million investment in Alibaba in 2000, which yielded tens of billions in returns, and the 2016 acquisition of Arm Holdings for $32 billion to anchor semiconductor capabilities amid IoT growth. He launched the $100 billion SoftBank Vision Fund in 2017 to scale such wagers on AI and autonomy, focusing on founders with outsized ambition rather than established companies, though this approach has incurred losses, such as heavy stakes in WeWork and Uber that prompted Son to express embarrassment over the track record in 2019. Despite mediocre Vision Fund returns as of 2025, Son persists with aggressive AI allocations, including pledges exceeding $100 billion, embodying a strategy of flooding winners with capital while accepting probabilistic risks in pursuit of exponential societal impact.[66][67][68][69][70]Key Executives and Board Composition
Masayoshi Son serves as Chairman and Chief Executive Officer of SoftBank Group Corp., a position he has held since founding the company in 1981, overseeing strategic investments and corporate direction.[71] Yoshimitsu Goto acts as Senior Vice President, Chief Financial Officer, Chief Information Security Officer, and Global Compliance Officer, managing finance, administration, and legal functions.[72] Other key corporate officers include Kazuko Kimiwada as Senior Vice President, Chief Accounting Officer, and Chief Sustainability Officer, responsible for accounting oversight; Seiichi Morooka as Head of the CFO Office and Finance Unit; and Yoshimasa Magata as Head of the CEO Office, appointed effective June 27, 2025.[72] The Board of Directors comprises nine members as of June 27, 2025, including four internal directors and five external directors, with four of the external directors designated as independent to enhance oversight.[73] Internal directors include Representative Director Masayoshi Son, Board Directors Yoshimitsu Goto, Ken Miyauchi (former President and CEO of SoftBank Corp.), and Rene Haas (CEO of Arm Holdings plc, a SoftBank-controlled subsidiary).[72] External directors consist of Masami Iijima, Yutaka Matsuo, Keiko Erikawa (all independent), Kenneth A. Siegel, and David Chao, who provide specialized expertise in areas such as finance, technology, and venture capital.[73] Board attendance records indicate full participation (9/9 meetings) across external directors for the fiscal year ending March 2025, reflecting active engagement.[73]| Role | Name | Type |
|---|---|---|
| Representative Director | Masayoshi Son | Internal |
| Board Director | Yoshimitsu Goto | Internal |
| Board Director | Ken Miyauchi | Internal |
| Board Director | Rene Haas | Internal |
| External Director (Independent) | Masami Iijima | External |
| External Director (Independent) | Yutaka Matsuo | External |
| External Director (Independent) | Keiko Erikawa | External |
| External Director | Kenneth A. Siegel | External |
| External Director | David Chao | External |
Ownership Structure and Shareholder Influence
SoftBank Group Corp. is a publicly traded holding company listed on the Tokyo Stock Exchange (ticker: 9984), with its ownership dispersed among individual, institutional, and trust account holders. As of March 31, 2025, founder and Chairman Masayoshi Son held the largest stake, comprising 426,661 thousand shares or 29.68% of total issued shares.[74] This position underscores Son's pivotal role, though it falls short of a majority, allowing institutional investors to exert collective pressure through voting at annual general meetings, such as the 45th held on June 27, 2025.[75] The next largest shareholders include Japanese trust accounts representing domestic institutions: The Master Trust Bank of Japan, Ltd. (Trust Account) with 246,540 thousand shares (17.15%) and Custody Bank of Japan, Ltd. (Trust Account) with 103,192 thousand shares (7.18%).[76] Foreign institutional ownership is substantial but fragmented, with entities like JPMorgan Securities Japan Co., Ltd. holding 385,418 thousand shares (0.81%) and Goldman Sachs Japan Co., Ltd. (via BNYM) at similar minor levels.[77] Overall, insiders including Son account for under 35% of economic ownership, while public and institutional float dominates the remainder, enabling market-driven accountability but limiting any single non-Son shareholder's veto power.[78] Shareholder influence manifests primarily through governance mechanisms rather than concentrated control. Son's stake, combined with his executive authority, has historically driven high-risk strategies like the Vision Funds, often prioritizing long-term disruption over short-term returns—a approach ratified by shareholders despite volatility, as evidenced by approvals in annual meetings.[79] Institutional holders, including major Japanese banks and global funds like Norges Bank (1.15% as of mid-2025), monitor performance via proxy voting but have rarely challenged Son's vision publicly, reflecting deference to his track record in bets like Alibaba.[80] This dynamic highlights a structure where economic ownership dilutes formal control, yet Son's aligned incentives and board influence sustain strategic continuity, with governance rated moderately negative by agencies due to concentrated decision-making risks.[79]Core Business Operations
Telecommunications via SoftBank Corp.
SoftBank Corp., the primary telecommunications arm of SoftBank Group Corp., delivers mobile voice, data, and internet services to approximately 50 million subscribers in Japan, securing a market share of about 25% as of March 2025.[81][82] The company's consumer segment, dominated by mobile communications, generated the bulk of its revenue, with mobile service revenue rising 7.3% year-over-year to ¥397.5 billion in the fiscal quarter reported in May 2025, fueled by reduced customer acquisition costs and a 4% subscriber increase.[83] Overall, SoftBank Corp. reported consolidated revenue of ¥6,544.3 billion for the fiscal year ended March 31, 2025, up 7.6% from the prior year, driven largely by telecommunications growth across fixed and mobile lines.[84] The foundation of SoftBank's mobile operations traces to the 2006 acquisition of Vodafone K.K. for ¥1.75 trillion (approximately $15 billion), which propelled SoftBank into Japan's competitive mobile market as the third major operator behind NTT Docomo and KDDI.[85][86] This deal, completed in April 2006 through subsidiary BB Mobile Corp., integrated Vodafone's network with SoftBank's broadband expertise, enabling bundled offerings that boosted subscriber growth from Vodafone's stagnant base.[87] Rebranded as SoftBank Mobile, the unit expanded aggressively, investing in infrastructure to challenge incumbents on pricing and service innovation. Technological advancements have defined SoftBank Corp.'s telecom strategy, including the March 2020 launch of 5G services in select urban areas, backed by over $1.9 billion in planned investments through 2025 for nationwide expansion.[88] Partnerships, such as with Ericsson for 4G/5G equipment upgrades announced in July 2025, aim to enhance network capacity and support emerging applications like AI-integrated services.[89] Looking ahead, SoftBank is pioneering high-altitude platform stations (HAPS) for stratospheric broadband, with pre-commercial trials slated for 2026 using Sceye's platforms to extend coverage to remote regions.[90] These efforts position the company for 6G transitions, with research emphasizing non-terrestrial networks and edge computing to sustain competitiveness amid Japan's dense urban demand and rural connectivity gaps.[91]Semiconductor Design through Arm Holdings
Arm Holdings plc, a Cambridge, UK-based company, specializes in the design and licensing of intellectual property for energy-efficient microprocessors, graphics processing units, and related software tools used in semiconductors for applications ranging from smartphones to data centers.[92] Under SoftBank Group's majority ownership since 2016, Arm has become a cornerstone of the conglomerate's exposure to the semiconductor industry, providing royalty-based revenue from licensing its architecture, which powers over 250 billion chips shipped cumulatively as of 2023.[92] The company's business model emphasizes IP licensing rather than fabrication, enabling partners like Apple, Qualcomm, and Samsung to integrate Arm's designs into their custom chips, which has driven consistent revenue growth amid rising demand for power-efficient computing.[92] SoftBank announced its acquisition of Arm on July 18, 2016, agreeing to purchase the company for £24.3 billion (approximately $32 billion) at £17 per share, representing a 43% premium over Arm's closing price prior to the deal.[93] The transaction, driven by SoftBank founder Masayoshi Son's vision to position the group at the forefront of Internet of Things (IoT) and mobile computing ecosystems, closed on September 5, 2016, after regulatory approvals and shareholder consent.[94] This all-cash deal marked one of SoftBank's largest acquisitions, integrating Arm's technology stack to complement its telecommunications and investment arms, with expectations of synergies in embedded systems and low-power processors.[94] Post-acquisition, Arm's strategic value intensified amid geopolitical tensions and market shifts. In September 2020, SoftBank agreed to sell Arm to Nvidia for $40 billion, aiming to accelerate AI and data center innovations through combined expertise, but the deal collapsed in February 2022 due to antitrust scrutiny from regulators in the UK, US, China, and EU over concerns of reduced competition in chip design.[95] SoftBank retained full control, opting instead for an initial public offering (IPO) on September 14, 2023, on the Nasdaq, where shares priced at $51 debuted at $56.10 and closed at $63.59, valuing the company at approximately $65 billion and raising $4.87 billion primarily for SoftBank, which retained about 90% ownership.[96][97] By 2025, Arm's designs have gained prominence in AI semiconductors, with architecture adaptations for neural processing units (NPUs) and edge AI devices, contributing to SoftBank's pivot toward artificial intelligence infrastructure.[98] The company reported expanded partnerships for AI-optimized CPUs and software frameworks, supporting deployments from cloud servers to consumer electronics, while Arm shares rose over 124% in 2024 alone, bolstering SoftBank's portfolio valuation.[56][98] SoftBank views Arm as foundational to its semiconductor strategy, licensing IP that underpins efficient AI chips and positioning the group to capitalize on the sector's projected growth, though challenges persist in navigating US-China trade restrictions affecting Arm China operations.[99][100]Other Domestic Ventures (Yahoo Japan, PayPay)
SoftBank Group Corp. established Yahoo Japan Corporation on January 31, 1996, as a 60:40 joint venture with Yahoo! Inc. of the United States to develop internet services tailored for the Japanese market.[101][2] Yahoo Japan rapidly expanded into a leading domestic portal, offering search, email, news, auctions, and advertising platforms, capitalizing on Japan's early internet adoption.[2] In June 2017, SoftBank Group transferred its direct 36.4% stake in Yahoo Japan to SoftBank Corp., its telecommunications subsidiary, to consolidate domestic operations.[102] By November 2019, Yahoo Japan restructured as Z Holdings Corp., a holding company, which merged with Line Corp. in March 2021 to combine search, e-commerce, and messaging capabilities under joint oversight from SoftBank and Naver Corp.[103][104] This entity evolved into LY Corporation in October 2023, with A Holdings—a 50:50 joint venture between SoftBank Corp. and Naver—holding 64.5% ownership, ensuring SoftBank's substantial influence over Yahoo Japan's operations as a core subsidiary.[105][106] PayPay Corp., launched on October 29, 2018, operates as a QR code-based mobile payment platform formed by SoftBank Corp. and Yahoo Japan (subsequently LY Corp.), integrating SoftBank's distribution channels with Yahoo's software expertise and initial technical input from Paytm of India.[107][108] The service targeted Japan's cash-dominant economy, offering incentives like cashback to drive adoption, resulting in over 68 million active smartphone users by March 2025 and 70 million registered users by July 2025.[107][109] PayPay holds approximately 70% of Japan's QR code payment market and 35% of the broader mobile payments sector as of recent estimates, processing over 380 million remittances in 2024 alone.[110][111] Ownership is shared, with SoftBank Corp. and LY Corp. each directly holding 5.9% of shares and 50% stakes in B Holdings Corp., which controls 57.9% of PayPay's voting rights.[106] In fiscal year 2025, SoftBank's financial segment—including PayPay—saw operating profit more than double to 18.1 billion yen, reflecting robust transaction growth.[112] As of October 2025, PayPay is pursuing a U.S. initial public offering by year-end, targeting a valuation over $20 billion to fund expansion, including entry into South Korean merchant networks via Alipay+ partnerships starting September 2025.[112][113]Investment Arms
SoftBank Vision Fund 1: Formation and Early Bets
The SoftBank Vision Fund 1 (SVF 1) was established on October 14, 2016, as a technology-focused venture capital fund managed by SoftBank Investment Advisers, a subsidiary of SoftBank Group Corp., with an initial target of $100 billion in commitments.[114] The fund held its first major close on May 20, 2017, securing over $93 billion from anchor investors including Saudi Arabia's Public Investment Fund (PIF) with $45 billion, Abu Dhabi's Mubadala Investment Company with $15 billion, and SoftBank itself committing approximately $25 billion at that stage, later increasing its total contribution to around $33 billion through equity and obligations.[36] [35] By its final close in 2018, SVF 1 had raised $98.6 billion, marking it as the largest private equity fund ever at the time, structured to enable large-scale, late-stage investments in disruptive technologies rather than traditional early-stage venture rounds.[115] [46] SVF 1's formation was driven by SoftBank Group founder Masayoshi Son's vision to accelerate the "information revolution" through concentrated bets on artificial intelligence, robotics, and shared economy platforms, departing from conventional VC models by deploying checks averaging $300–400 million per deal to fuel rapid scaling.[116] The fund's structure emphasized freedom-level capital for portfolio companies, often involving board seats and strategic guidance from SoftBank, with a focus on global tech unicorns capable of achieving trillion-dollar valuations.[117] Unlike typical limited partnerships, SVF 1 incorporated unique elements such as SoftBank's leveraged commitments and secondary market participation to amplify deployment speed.[46] Early investments beginning in 2017 targeted high-growth sectors like mobility and co-working, with notable deals including a $1.2 billion direct stake in Uber Technologies in August 2017, supplemented by over $8 billion in secondary purchases, valuing the ride-hailing firm at $69 billion post-investment.[46] [38] Other initial bets encompassed WeWork (real estate co-working), SoFi (fintech lending), Fanatics (e-commerce sports merchandise), and 99 (Brazilian ride-hailing), reflecting a strategy of backing asset-light, network-effect businesses amid a frothy late-2010s startup environment.[38] By mid-2018, SVF 1 had deployed billions into these and similar ventures, prioritizing velocity over exhaustive due diligence to capture market dominance in emerging tech paradigms.[116]SoftBank Vision Fund 2: Shift to AI and Autonomy
SoftBank Vision Fund 2 was announced on July 25, 2019, with an initial target of $108 billion in capital, primarily backed by SoftBank Group's $30 billion commitment and limited partners including Microsoft, Apple, and Foxconn, though actual commitments fell short at approximately $56 billion by early 2025.[118][115] Unlike the broader technology investments of Vision Fund 1, Fund 2 emphasized artificial intelligence (AI) technologies from inception, reflecting Masayoshi Son's conviction that AI would drive the next industrial revolution surpassing the internet and mobile eras.[118][53] The pivot to AI and autonomy stemmed from Vision Fund 1's substantial losses, including over $18 billion in write-downs on deals like WeWork in 2019-2020, prompting SoftBank to adopt a more disciplined, high-conviction approach favoring capital-intensive AI infrastructure over speculative consumer tech bets.[53][59] Son articulated this shift as returning to aggressive, transformative investments in AI systems capable of autonomy—such as self-operating robotics and decision-making algorithms—after a defensive phase of capital preservation post-2022 losses exceeding $30 billion across both funds.[53][119] This strategy prioritized scalability in AI hardware, software, and enabling technologies like semiconductors, aiming to capture compounding returns from foundational AI advancements rather than incremental apps.[120] Key investments underscore the AI-centric thesis, with $9.7 billion committed to OpenAI by May 31, 2025, positioning it as one of Fund 2's largest holdings and fueling projects like the $500 billion Stargate AI data center initiative in partnership with OpenAI and Oracle.[121][122] Other notable AI-focused stakes include IonQ in quantum computing for AI acceleration, AI Medical Service for diagnostic tools, and broader portfolio exposure to Nvidia's AI chips, reflecting bets on compute-intensive autonomy enablers like machine learning models for robotics and self-driving systems.[7][120] In September 2025, Fund 2 executed a 20% staff reduction—eliminating over 50 roles—to streamline operations for fewer, bolder AI deployments, aligning with Son's vision of AI achieving artificial general intelligence (AGI) within a decade.[59][123] This concentrated focus has yielded early gains, with Fund 2 contributing to SoftBank's Vision Funds posting a ¥1.1 trillion profit in fiscal year 2025, driven by AI holdings amid surging demand for generative models and infrastructure.[124] However, the high-risk profile—evident in massive OpenAI allocations without immediate liquidity—exposes SoftBank to volatility in unproven AGI timelines, contrasting Fund 1's diversified but loss-prone spread.[53][125]Performance Metrics and Return Profiles
The SoftBank Vision Fund 1 (SVF1), launched in 2017 with approximately $100 billion in commitments, has delivered a net internal rate of return (IRR) of 7% and a total value to paid-in capital (TVPI) multiple of 1.4x as of mid-2025, reflecting a recovery from earlier losses driven by write-downs in investments like WeWork and Oyo.[126] [127] Cumulative performance on $90 billion deployed shows $113 billion in total value, including unrealized gains from AI-related holdings, though realized distributions to limited partners remain modest at a distributions to paid-in (DPI) ratio below 0.5x due to the long-tail nature of private investments.[128] These metrics lag Masayoshi Son's historical personal IRR benchmark of around 44% from prior ventures, underscoring challenges in scaling aggressive tech bets amid market corrections in 2019-2022.[46]| Metric | Vision Fund 1 (as of 2025) | Notes |
|---|---|---|
| IRR | 7% | Net of fees; improved from negative territory post-2022[126] |
| TVPI | 1.4x | Includes unrealized valuations boosted by AI sector gains[127] |
| DPI | <0.5x | Limited exits; heavy reliance on secondary sales and IPOs[128] |
| Cumulative Return | $113B on $90B invested | Per SoftBank earnings call; subject to future realizations[128] |
Major Investments and Portfolio
Landmark Successes (Alibaba, Arm IPO)
SoftBank's investment in Alibaba represents one of the most profitable venture capital bets in history. In October 2000, Masayoshi Son, founder and CEO of SoftBank, committed $20 million for approximately a 34% stake in the nascent e-commerce startup founded by Jack Ma, despite initial rejections from other investors and Alibaba's lack of a formal business plan at the time.[131][132] This early funding enabled Alibaba's expansion into China's burgeoning online marketplace, culminating in the company's New York Stock Exchange IPO on September 19, 2014, which raised $25 billion and valued Alibaba at $168 billion—making it the world's largest IPO at that point.[133] SoftBank's stake, adjusted through subsequent investments, was valued at around $60 billion immediately post-IPO, reflecting a return exceeding 3,000 times the initial outlay.[134] Over the ensuing years, the Alibaba holding underpinned SoftBank's financial strategy, funding further acquisitions and the Vision Fund. By 2018, SoftBank's approximately 27% stake in Alibaba was worth $132 billion, providing collateral for debt financing and amplifying SoftBank's influence in global tech. Cumulative gains from the investment, including sales of portions of the stake, reached approximately $72 billion by 2023 relative to the original equivalent of $54 million in yen terms, though SoftBank gradually reduced its ownership to under 15% by early 2024 amid Alibaba's regulatory challenges in China.[134] The success stemmed from Son's conviction in Ma's vision for digital commerce in China, validated by Alibaba's dominance in retail, cloud computing, and payments, though it also exposed SoftBank to geopolitical risks as U.S.-China tensions mounted. The initial public offering of Arm Holdings marked another pivotal win for SoftBank, capitalizing on surging demand for its semiconductor intellectual property amid the AI boom. SoftBank had acquired the British chip designer in September 2016 for £24 billion (approximately $32 billion), positioning it as a cornerstone of its strategy to control mobile and data-center architectures.[135] Arm's Nasdaq debut on September 14, 2023, priced 95.5 million shares at $51 each, raising $4.87 billion primarily for SoftBank, which retained about 90% ownership post-IPO, and implied an initial valuation of $54.5 billion.[136][96] Shares surged 25% on the first trading day, pushing Arm's market capitalization to nearly $60 billion and affirming SoftBank's timing after delaying the IPO from 2021 amid market volatility.[96] By mid-2024, Arm's valuation exceeded $170 billion, elevating SoftBank's stake to roughly $158 billion and driving SoftBank's stock to a 24-year high, as Arm's energy-efficient designs powered over 99% of smartphones and gained traction in AI servers from clients like Nvidia and Apple.[56] This IPO unlocked liquidity while preserving SoftBank's control, contrasting with prior private valuations and highlighting Arm's royalty-based model, which generated £1.4 billion in fiscal 2023 revenue with high margins.[135] The event bolstered SoftBank's balance sheet, aiding recovery from Vision Fund losses, though it faced scrutiny over Arm's growth dependence on licensing rather than fabrication.High-Profile Underperformers (WeWork, OYO Rooms)
SoftBank Group's Vision Fund invested approximately $16 billion in WeWork between 2017 and 2019, elevating the coworking company's valuation to a peak of $47 billion by January 2019 through a series of funding rounds that included $4.4 billion in initial commitments.[43][137] This aggressive backing, led by SoftBank CEO Masayoshi Son, supported WeWork's rapid expansion but masked underlying operational weaknesses, including chronic unprofitability with losses exceeding $2 billion in 2018 alone.[41] The company's failed initial public offering attempt in September 2019 exposed governance lapses under founder Adam Neumann, such as self-dealing and inflated projections, causing the valuation to plummet to around $8 billion as SoftBank provided an additional $8 billion bailout to stabilize operations.[138][139] Subsequent write-downs compounded SoftBank's losses: a $4.6 billion impairment in November 2019 and a further $6.6 billion in April 2020, reflecting WeWork's deteriorating fundamentals amid the COVID-19 pandemic, which shuttered spaces and widened net losses to $3.2 billion in 2020.[140][141] By 2023, WeWork accumulated $11.4 billion in net losses from 2020 through mid-year and filed for Chapter 11 bankruptcy on November 6, 2023, reducing its market valuation to $44.5 million.[142][41] SoftBank's total exposure resulted in billions in unrealized losses, highlighting risks of overvaluation in high-growth bets without sustainable unit economics. OYO Rooms, an Indian budget hospitality aggregator, received substantial SoftBank funding starting in 2015, culminating in a peak valuation of $10 billion by 2019 as the Vision Fund contributed over $1.4 billion to fuel international expansion into markets like the U.S. and Europe.[143][144] However, aggressive growth led to operational strains, including hotel partner disputes, regulatory hurdles in India, and persistent losses peaking at over ₹13,000 crore ($1.6 billion) in fiscal year 2020, prompting SoftBank to slash OYO's internal valuation to $2.7 billion by June 2022—a 73% drop from the 2019 high—due to contracted total addressable market and overinflated prior assessments.[145][146][147] Further markdowns followed, with OYO's valuation falling to $2.4 billion in an August 2024 funding round of $175 million, despite SoftBank retaining a 47% stake as the dominant investor.[143][144] The company's multiple delayed IPO attempts—initially targeting $10-12 billion in 2021 but postponed amid market volatility and SoftBank's valuation concerns—reflected ongoing profitability challenges, with net losses of ₹1,287 crore ($154 million) in fiscal year 2023 before a modest turnaround to ₹230 crore ($27.5 million) profit in fiscal year 2024.[148][149] These underperformances underscore SoftBank's exposure to execution risks in emerging-market disruptors, where rapid scaling outpaced demand recovery post-pandemic.[146]Strategic Exits and Write-Downs
SoftBank Group has undertaken numerous write-downs on its Vision Fund investments, particularly following the 2019 market correction that exposed overvaluations in high-growth startups. In fiscal year 2020, the company recorded an operating loss of approximately $13 billion, largely attributable to valuation reductions in portfolio companies such as WeWork and Uber Technologies.[45] These actions reflected a strategic recalibration amid deteriorating fundamentals, where inflated private valuations failed to hold post-IPO or during liquidity events. A prominent case involved WeWork, where SoftBank and its Vision Fund had committed nearly $18.5 billion by late 2019, representing about 80% ownership after a bailout package that included $9.5 billion in new capital and facilitated founder Adam Neumann's exit.[139] However, in April 2020, SoftBank terminated a planned $3 billion tender offer to repurchase additional shares, citing unmet conditions amid WeWork's ongoing cash burn and governance issues, which prompted lawsuits from WeWork's board.[150] This led to substantial write-downs; WeWork's implied valuation plummeted from $47 billion pre-IPO attempt to $2.9 billion at its 2021 SPAC merger, resulting in SoftBank realizing losses exceeding $10 billion on the position as it divested holdings over subsequent years. The exit underscored SoftBank's shift from aggressive expansion to damage control, prioritizing balance sheet preservation over indefinite support for unprofitable models. Similar patterns emerged with Oyo Rooms, where SoftBank's investments valued the Indian hotel aggregator at $10 billion in 2019 but pressured restructuring amid slowing growth and regulatory hurdles, leading to valuation cuts of over 70% by 2020 and partial write-downs.[151] In fiscal 2022, the Vision Fund incurred $7.2 billion in losses from writedowns on assets including SenseTime, DoorDash, and GoTo, as public market scrutiny revealed unsustainable economics in ride-hailing, delivery, and facial recognition sectors.[152] These moves were strategic, enabling capital reallocation; across Vision Fund I, 47 investments—64% of the portfolio—were marked down, contributing to a $9 billion net loss at the group level.[46] By 2023, cumulative Vision Fund losses reached $32 billion for the fiscal year, driven by broader tech downturns.[153] In a pivot toward AI and semiconductors, SoftBank sold or wrote down $29 billion in U.S. Vision Fund assets as of May 2024, liquidating underperforming holdings to fund bets like OpenAI and Arm Holdings expansions.[154] This included abandoning commitments such as a $300 million infusion into Wag! in 2019, signaling intolerance for persistent losses in consumer services.[155] Overall, while Vision Fund achieved 89 exits between 2020 and 2025—many via IPOs—the strategic emphasis on write-downs mitigated further erosion, with 129 unicorns retained but selectively pruned for viability.[156]Financial Performance
Revenue Streams and Profitability Trends
SoftBank Group's consolidated revenue is predominantly generated from its SoftBank segment, which encompasses telecommunications services including mobile communications, fixed-line broadband, and enterprise ICT solutions primarily through its majority-owned subsidiary SoftBank Corp.[157] In the fiscal year ended March 31, 2024 (FY2023), total consolidated revenue reached ¥6,544.3 billion, up 7.6% year-over-year, with the SoftBank segment contributing the vast majority via service revenues from consumer mobile subscriptions (¥2,239.0 billion) and equipment sales, alongside enterprise operations yielding additional billions in ICT products and recurring revenue streams.[84] [158] Secondary contributions come from the financial segment, including leasing and other finance-related activities (¥277.3 billion in related revenue growth), and minor corporate services, while investment activities primarily impact net income through gains rather than recurring revenue.[84] Profitability trends at SoftBank Group exhibit extreme volatility, driven less by stable operating revenues from telecommunications—which yielded operating income of ¥989.0 billion in FY2023, up 12.9%—and more by fair-value changes and realized gains/losses in its vast investment portfolio, including the Vision Funds and stakes like Alibaba and Arm Holdings.[84] [157] The company posted net losses peaking at ¥1.91 trillion in FY2020 amid write-downs on underperforming investments such as WeWork, following a ¥931.5 billion loss in FY2019; this contrasted with a record net profit of ¥4.99 trillion in FY2021 fueled by public listings like Coupang.[159] Subsequent years saw swings, including a ¥1.7 trillion loss in FY2022 from portfolio impairments, rebounding to a ¥1 trillion profit in FY2023 and ¥280 billion in FY2024, bolstered by the Arm IPO in September 2023 and partial recoveries in AI-related holdings, though offset by ongoing Vision Fund pressures.[159] [160] This pattern underscores a reliance on non-operating investment outcomes for bottom-line results, with return on equity turning positive at 10.2% in FY2024 after years of negatives, reflecting strategic shifts toward high-growth tech but exposing the group to market cycles and valuation risks.[160]Debt Management and Leverage Strategy
SoftBank Group Corp. has historically pursued a high-leverage strategy as a strategic investment holding company, utilizing debt to amplify returns on its equity base and fund large-scale investments in technology ventures, particularly through the Vision Funds. This approach involves issuing bonds, securing loans, and employing non-recourse financing backed by specific assets, which the company excludes from its core leverage calculations to reflect operational flexibility. By March 31, 2025, SoftBank's equity ratio stood at 25.7%, an improvement from 23.9% the prior year, signaling efforts to bolster balance sheet resilience amid volatile portfolio performance.[161][16] The company's debt management emphasizes optimizing capital structure through diversified issuances, including yen-denominated retail bonds, dollar- and euro-denominated senior notes, and hybrid instruments that provide partial equity credit from rating agencies. In fiscal year 2025, SoftBank raised approximately $4.1 billion via retail bonds in April, $4.2 billion in secured notes in July, and launched a $2.9 billion sale of dollar and euro notes in October, alongside $17.5 billion in share-backed financing—its third jumbo loan of the year—to support AI-focused commitments such as follow-on investments in OpenAI. Hybrid notes, issued in August and October 2025 with features like optional interest deferral and long maturities up to 2061, allow SoftBank to extend debt durations at relatively low coupons (e.g., 4.556% on a ¥200 billion hybrid in August) while managing refinancing risks.[162][163][164] Leverage supports the Vision Funds, with SoftBank funding much of Vision Fund 2's $65.8 billion corpus from its balance sheet, supplemented by net asset value (NAV) loans such as Apollo Global Management's expanded $5.4 billion facility in August 2025 and an $8.5 billion bridge loan in April for OpenAI equity. This debt-heavy model, rooted in founder Masayoshi Son's vision of exponential growth through concentrated bets, has drawn scrutiny for amplifying losses during downturns, as evidenced by writedowns exceeding $20 billion in 2019–2020 from underperformers like WeWork. However, recent deleveraging—via asset sales, buybacks, and selective refinancing—contributed to Moody's upgrading SoftBank's senior unsecured rating to Ba2 from Ba3 on September 17, 2025, citing strengthened credit fundamentals and reduced net debt relative to assets.[165][161][166] Critics argue the strategy's reliance on low-interest debt environments and optimistic valuations exposes SoftBank to interest rate hikes and market corrections, with loan-to-value (LTV) ratios monitored closely by agencies like S&P, which adjusted downgrade triggers to 35% in June 2025. SoftBank counters by adhering to internal financial policies prioritizing liquidity and asset quality, using project financing techniques for AI initiatives and non-recourse structures to isolate risks. As of October 2025, this persistent leverage—projected to fund a $500 billion AI push—underscores a calculated tolerance for volatility in pursuit of outsized returns, though sustained execution hinges on portfolio recoveries and external capital inflows.[79][167][168]Stock Performance and Market Valuation
SoftBank Group's shares, traded on the Tokyo Stock Exchange under ticker 9984, have displayed pronounced volatility driven by the outcomes of its aggressive investment strategy, particularly through the Vision Funds and key holdings like Alibaba and Arm Holdings. The stock surged during the late 1990s dot-com era but collapsed in its aftermath, reaching a historic low of 140 JPY on November 17, 2002. Subsequent recovery was bolstered by the 2014 Alibaba IPO, which at one point represented a substantial portion of SoftBank's net asset value, though the company later trimmed its stake from 23.7% to 14.6% amid market pressures and cash needs, booking a $34 billion gain in fiscal 2022.[169][170] More recently, performance has hinged on the Vision Funds' returns and Arm's trajectory, with early Vision Fund 1 missteps—such as heavy losses from WeWork—contributing to a $24 billion net loss in fiscal 2022 and depressed share prices. However, Arm's 2023 IPO and rising valuation amid AI demand propelled recovery, with SoftBank's stake in Arm valued at $149.2 billion as of mid-2025 based on its share price. The Vision Fund posted its strongest quarterly gain in four years at $4.8 billion in Q1 fiscal 2025, fueled by public portfolio holdings like Grab, further supporting stock appreciation. Over the past 12 months to October 2025, shares gained amid broader AI optimism, though earlier geopolitical risks tied to Chinese exposures weighed on sentiment.[11][171][172][8][173] As of October 24, 2025, the stock closed at 23,880 JPY, up 5.69% from 22,595 JPY the prior day, with a 52-week range of 5,730 JPY to 25,735 JPY and a four-week gain of 28.41%. Market capitalization reached 35.103 trillion JPY, underscoring investor focus on SoftBank's pivot toward AI and semiconductors despite historical leverage risks.[174][175][176] Key valuation metrics as of late October 2025 reflect growth premiums tempered by execution risks in portfolio realizations:| Metric | Value | Notes |
|---|---|---|
| Trailing P/E Ratio | 30.67 | Based on TTM earnings; higher forward P/E of 58.67 signals expected expansion.[177][178] |
| EV/EBITDA | 31.67 (ADR equiv.) | Indicates premium pricing relative to operational cash flows from telecom and investments.[179] |
| Price/Book | 2.49 (ADR equiv.) | Reflects asset-heavy balance sheet dominated by unrealized holdings.[180] |