Please ensure Javascript is enabled for purposes of website accessibility

Softbank Announces $41 Billion in Asset Sales, Plans $18 Billion in Stock Buy Backs

By Donna Fuscaldo - Mar 23, 2020 at 1:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In an effort to silence critics Softbank announced a huge asset sales and stock buyback program, sending shares higher but still way off the 2020 lows.

Softbank (SFTB.Y 1.02%), the Japanese technology company, plans to sell $41 billion in assets in an effort to buy back shares and silence critics of the company. 

The plan, the largest in the company's history, includes $18 billion set aside to repurchase shares. That's in addition to the $4.8 billion in buybacks it announced earlier this month. The asset sales will come over the course of the year, with proceeds also going to pay down debt.  

Man holding digital assets in the palm of his hand.


The announcement sent shares of Softbank surging more than 17% but isn't enough to recoup the losses the stock has seen since the start of 2020. Shares are down nearly 30% so far this year. 

The Japanese technology company has faced pressure from investors including Elliott Management, which built a $2.5 billion stake in Softbank and has raised concerns about the company's recent tech investments.

"This will allow us to strengthen our balance sheet while significantly reducing debt," Chief Executive Masayoshi Son said in a statement. "This program will be the largest share buyback and will result in the largest increase in cash balance in the history of SBG, reflecting the firm and unwavering confidence we have in our business." 

It's not clear which assets Softbank plans to sell off during the next four quarters. Reuters speculated it could include its stake in Sprint (S), T-Mobile (TMUS -0.39%), and potentially Alibaba (BABA 0.94%).

The moves aren't expected to curtail Son's quest to find the technology leaders of tomorrow. He recently warned there may be more bad investments to come as he continues that mission.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sprint Corporation Stock Quote
Sprint Corporation
T-Mobile US, Inc. Stock Quote
T-Mobile US, Inc.
$136.54 (-0.39%) $0.54
SoftBank Group Corp. Stock Quote
SoftBank Group Corp.
$19.82 (1.02%) $0.20
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
$118.73 (0.94%) $1.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.