Please ensure Javascript is enabled for purposes of website accessibility

SoftBank Has Already Spent Nearly $3 Billion on Share Repurchases

By Donna Fuscaldo – Jun 12, 2020 at 10:51AM

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

SoftBank is about 60% complete with its stock buyback program.

SoftBank (SFTB.Y -3.02%) has spent nearly $3 billion repurchasing shares since the end of March when it announced shareholder-friendly moves to shore up cash and buyback stocks. 

In a press release, the Japanese tech stock said that as of March 31, it has acquired 71,536,700 of its shares, paying 311.7 billion yen or $2.9 billion. The company plans to purchase a total of 145,000,000 shares spending a maximum of 500 billion yen and has already completed nearly 60% of purchases. The share repurchase program runs through March 15, 2021. 

The words Stock Buybacks in front of a stock screen with money.

IMAGE SOURCE: GETTY IMAGES.

Struggling with mounting losses in its Vision Technology fund and facing pressure from shareholders, SoftBank announced at the end of March it was engaging in a massive restructuring program to raise capital and silence critics, including $41 billion in asset sales and $18 billion in share repurchases. That's in addition to the $4.8 billion in buybacks the company announced earlier in March. 

Since that announcement, SoftBank reported a nearly $18 billion loss for its Vision Fund in the fiscal year ended March 31. The losses were largely due to writedowns of its investments in WeWork and Uber Technologies. SoftBank said at the time that Uber represented $5.2 billion of the losses while WeWork contributed $4.6 billion. The rest of its investments made up the remaining $7.5 billion of losses.  Last month SoftBank announced plans to sell a stake in its Japanese wireless holdings

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

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

SoftBank Group Corp. Stock Quote
SoftBank Group Corp.
SFTB.Y
$17.95 (-3.02%) $0.56
Uber Technologies, Inc. Stock Quote
Uber Technologies, Inc.
UBER
$27.82 (-2.66%) $0.76

*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
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

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.