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SoftBank Group (SFTBF)

- OTCPK - Current
  • Sep. 29, 2014, 5:47 PM
    • The WSJ says it "wasn't immediately clear" what led buyout talks between SoftBank (OTCPK:SFTBF) and Dreamworks (NASDAQ:DWA) to cool. The paper now reports the companies "could ultimately strike a deal other than an outright takeover ... for instance some kind of content partnership."
    • DWA -7.4% AH to $26.10. Shares rose 26% in regular trading on reports of acquisition talks featuring a $32/share offer.
    | Sep. 29, 2014, 5:47 PM | 2 Comments
  • Sep. 22, 2014, 7:32 AM
    • The Alibaba catalyst in the rearview mirror, Bank of America and Bernstein both pull Buy ratings on Yahoo (NASDAQ:YHOO).
    • Softbank (OTCPK:SFTBF) tumbled 6.1% in Tokyo action overnight. "Part of the market used Softbank as an investment vehicle for Alibaba," says Jefferies' Atul Goyal. "And now that segment of the market doesn’t need to invest in it." Softbank owns 34% of Alibaba and its CEO said last week it has no intention of being a seller. Goyal reminds those selling Softbank today that Alibaba is just one of its investments, and Masayoshi Son has a number of other potential gems in the portfolio.
    • Yahoo -2% premarket
    | Sep. 22, 2014, 7:32 AM | 9 Comments
  • Sep. 22, 2014, 5:19 AM
    • As Alibaba's (NYSE:BABA) largest stockholder, SoftBank (OTCPK:SFTBF) says it expects a gain of about ¥500B ($4.6B) from the Chinese company's listing in NY, after shares surged 38% on their first day of trade.
    • CEO Masayoshi Son says he would want to own more of Alibaba, although he reiterated that SoftBank was happy with its current 32% stake.
    • OTCPK:SFTBF +1% AH
    | Sep. 22, 2014, 5:19 AM | 7 Comments
  • Sep. 19, 2014, 12:01 PM
    • Alibaba (NYSE:BABA) opened at $92.70 and has quickly jumped to at $99, up 45.6% from a $68 IPO price. Its market cap stands at a whopping $246.6B (66x FY14 EPS), as investors bet the company's strong top-line growth (46% Y/Y in Q2) won't let up.
    • Yahoo (YHOO +1.2%) remains higher. With underwriters expected to exercise a 15% overallotment option, the company will be selling 140M shares through the IPO, good for pre-tax proceeds of $9.5B.
    • SoftBank's (OTCPK:SFTBF) 797.7M-share stake has a current pre-tax value of $79B.
    • Prior Alibaba coverage
    • Prospectus, IPO preview
    | Sep. 19, 2014, 12:01 PM | 37 Comments
  • Sep. 18, 2014, 5:30 PM
    • Alibaba's (Pending:BABA) IPO price is at the high end of a $66-$68 range. The Chinese e-commerce giant is valued at $167.6B - 20x FY14 (ended March '14) sales and 45x FY14 earnings.
    • Yahoo (NASDAQ:YHOO) +0.5% AH. Alibaba begins trading tomorrow.
    • Related tickers: OTCPK:SFTBF, OTCPK:SFTBY
    • Prior Alibaba coverage, prospectus
    | Sep. 18, 2014, 5:30 PM | 43 Comments
  • Sep. 15, 2014, 2:39 PM
    • America Movil (AMX +2.4%) has contacted potential suitors including AT&T (T +0.6%) and SoftBank (OTCPK:SFTBY, OTCPK:SFTBF), and perhaps BCE’s Bell Canada (BCE -0.1%) and China Mobile (CHL +1%), as it prepares to sell assets along the east coast of Mexico that could fetch as much as $17.5B, Bloomberg reports.
    • AMX is selling assets in its biggest market to appease antitrust regulators; the Mexico-based carrier, which commands 70% of the local wireless market and 80% of landlines, may get penalties revoked if it cuts market share below 50%.
    | Sep. 15, 2014, 2:39 PM | 1 Comment
  • Sep. 5, 2014, 4:05 PM
    • Alibaba (Pending:BABA) has set a $60-$66 IPO price range. That spells a valuation range of $147.9B-$162.7B. The company is looking to offer 320.1M shares - 123.1M new shares, and 197M on behalf of existing holders. At the midpoint of the range, proceeds from the new shares would total $7.7B. (prospectus)
    • Yahoo (YHOO +1%) is obligated to sell up to 140M Alibaba shares at IPO time. At the midpoint, that would spell proceeds of $8.8B. Its total stake would be valued at $33B pre-tax, and SoftBank's (OTCPK:SFTBF, OTCPK:SFTBY) at $50.2B. Yahoo has moved higher on the news.
    • Earlier: Alibaba to reportedly start trading on Sep. 19
    | Sep. 5, 2014, 4:05 PM | 56 Comments
  • Sep. 5, 2014, 11:57 AM
    • CNBC reports Alibaba (Pending:BABA) will price its IPO on Thursday, Sep. 18, and begin trading the next day. That fits with recent reports from the WSJ and NYT.
    • The NYT reports today Alibaba's roadshow will start in NYC on Monday. No word yet on the price/valuation range sought by the Chinese e-commerce giant - plenty of analysts have assigned valuations above $150B.
    • Yahoo (YHOO +1%) has ticked higher following the report.
    • Related tickers: OTCPK:SFTBF, OTCPK:SFTBY
    | Sep. 5, 2014, 11:57 AM | 8 Comments
  • Sep. 2, 2014, 10:38 AM
    • The Nikkei speculates SoftBank (OTCPK:SFTBF) could make an offer for Vodafone (VOD +0.5%), given a Sprint/T-Mobile deal is off the table for now. Vodafone has turned positive after starting the day in the red.
    • Though Sprint/T-Mobile has been shelved, SoftBank just raised $3.9B in debt, a move viewed by many as a precursor to fresh M&A activity. Moreover, SoftBank will soon have a chance to monetize its 34.1% Alibaba stake (could be worth over $60B pre-tax following the IPO).
    • Nonetheless, Vodafone ($91B market cap) would be a very big fish for SoftBank ($87B market cap) to digest. This isn't the first time speculation about a deal between the carriers has emerged.
    • Previous: Questionable Vodafone/AT&T rumor emerges
    • Update (1:05PM ET): Shares have given back their gains, and are now down 0.6%.
    | Sep. 2, 2014, 10:38 AM | Comment!
  • Aug. 27, 2014, 1:12 PM
    • With its Q2 results disclosed, Alibaba (Pending:BABA) is expected to provide an IPO price range "as soon as Tuesday," the NYT reports.
    • After setting a price range, Alibaba will reportedly kick off a 2-week roadshow (covering both Asia and the U.S.) ahead of an IPO the company hopes will take place during the week of Sep. 15.
    • Sources caution the Chinese e-commerce giant's plans could still change. The NYT previously reported Alibaba was planning an IPO "sometime after Labor Day." At one point, the company was rumored to be eying an early-August IPO.
    • Yahoo (YHOO +0.7%) continues to trade modestly higher.
    | Aug. 27, 2014, 1:12 PM | 13 Comments
  • Aug. 27, 2014, 9:52 AM
    • In a revised F-1, Alibaba (Pending:BABA) discloses it had calendar Q2 revenue of $2.54B (+46% Y/Y), and net income of $1.99B (boosted by $1.1B in interest/investment income). Op. income was $1.1B (+27% Y/Y). Revenue growth accelerated from Q1's 39% clip, a figure that had disappointed some investors.
    • Q2 free cash flow was $1.71B. Sales/marketing spend +70% Y/Y to $195M; R&D +68% to $315M.
    • GMV was RMB501B ($81.6B), +17% Q/Q and +45% Y/Y (46% growth was seen in Q1). Mobile accounted for 32.8% of GMV (up from Q1's 27.4%), and mobile revenue more than doubled Q/Q to $400M.
    • Annual orders +14% Q/Q to 14.5B; annual active buyers +9% to 279M; annual active sellers +11% to 8.5M; mobile monthly active users (MAUs) +15% to 188M.
    • Alibaba's Taobao marketplace (focused on smaller merchants) had a Q2 GMV of RMB342B, +33% Y/Y. The Tmall marketplace (focused on larger merchants) had a GMV of RMB159B, +81%.
    • Yahoo (YHOO +0.3%) is up slightly following Alibaba's release, which might be the company's last earnings update before its IPO.
    • Related tickers: OTCPK:SFTBF, OTCPK:SFTBY
    | Aug. 27, 2014, 9:52 AM | 22 Comments
  • Aug. 12, 2014, 5:15 PM
    • In a new F-1, Alibaba (Pending:BABA) discloses it has restructured its agreement with Chinese online payments giant Alipay and its parent, Small and Micro Financial Services.
    • Most notably, Alibaba will receive a 37.5% stake in Small and Micro/Alipay in the event of an IPO featuring a $25B+ valuation and $2B+ in gross proceeds. The deal is contingent on Alibaba's stake in Small and Micro not having reached 33% at IPO time. Previously, Alibaba's Alipay IPO payout was capped at $6B.
    • In the meantime, Alibaba will receive 37.5% of Small and Micro's pre-tax income in exchange for IP licensing and "software technology services." Its profit payout will be reduced in proportion to the equity stake it obtains in Small and Micro.
    • Alibaba is also selling assets related to its loan business for small/mid-sized companies (SMEs) to to Small and Micro for $518M, and entering into "software system use and service agreements" related to the SME loan business in exchange for an annual fee. From 2015-2017, the fee will be 2.5% of the average daily book balance for micro loans.
    • Yahoo (NASDAQ:YHOO) is up 0.8% AH.
    • Related tickers: OTCPK:SFTBF, OTCPK:SFTBY
    | Aug. 12, 2014, 5:15 PM | 10 Comments
  • Aug. 8, 2014, 11:10 AM
    • "Price competition will intensify ... Sprint (S -4.4%) will soon be ready to join the fray," says SoftBank's (OTCPK:SFTBF) Masayoshi Son following the end of Sprint's bid to acquire T-Mobile.
    • Son notes SoftBank used aggressive pricing and marketing to gain Japanese mobile share following the acquisition of Vodafone's struggling Japanese unit - "We had nothing we could be proud of ... But we were still able to win more net users than anyone else." - and mentions Sprint is testing new service plans (previous).
    • T-Mobile, of course, is already quite aggressive with its pricing, and AT&T had made sizable price cuts of its own in response. Verizon is refusing to return fire for now.
    • Sprint is now down 23% since reports emerged it's giving up on trying to buy T-Mobile for the time being.
    | Aug. 8, 2014, 11:10 AM | 3 Comments
  • Aug. 6, 2014, 9:22 AM
    • Sprint (NYSE:S) has confirmed reports CEO Dan Hesse is leaving, and will be replaced by Marcelo Claure, founder/CEO of of mobile hardware distributor Brighstar.
    • Claure, 43, is already a member of Sprint's board. He'll be resigning from Brighstar, and SoftBank (OTCPK:SFTBF) will acquire his remaining interest in the company. Bloomberg states Hesse may receive a $40M+ severance package.
    • Shares are off sharply premarket due to widespread reports Sprint is ending its bid (for now) to acquire T-Mobile on account of regulatory opposition, as investors fear the carrier will continue bleeding share to T-Mobile, Verizon, and AT&T as an independent entity.
    • More on Sprint/T-Mobile
    | Aug. 6, 2014, 9:22 AM | 10 Comments
  • Aug. 5, 2014, 7:14 PM
    • Bloomberg joins the WSJ in reporting Sprint (NYSE:S) is abandoning its T-Mobile USA bid. The news service adds Sprint plans to name a new CEO as soon as tomorrow.
    • Dan Hesse has been Sprint's CEO since 2007. But with a T-Mobile deal apparently off the table and Sprint continuing to lose share to rivals, SoftBank's (OTCPK:SFTBF) Masayoshi Son may feel new leadership is needed.
    • S -4.5% AH
    • Update: Re/code reports Marcelo Claure, founder of mobile hardware distributor Brightstar, will be named Sprint's CEO. Shares finished AH trading down 15.1% on the T-Mobile news.
    | Aug. 5, 2014, 7:14 PM | 16 Comments
  • Aug. 5, 2014, 6:58 PM
    • The WSJ reports Sprint (NYSE:S) is abandoning its bid to acquire T-Mobile USA (NYSE:TMUS) due to excessive regulatory hurdles.
    • There were already many doubts about the ability of a Sprint/T-Mobile deal to pass muster with regulators.
    • If Sprint is out of the picture, the coast is clear for Iliad (OTC:ILIAF) to pursue T-Mobile, provided financing isn't an issue. There were multiple reports earlier today indicating T-Mobile is rejecting Iliad's initial $33/share offer for a 56.6% stake.
    • TMUS -5.6% AH
    • Related tickers: OTCQX:DTEGY, OTCPK:SFTBF
    | Aug. 5, 2014, 6:58 PM | 14 Comments
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Company Description
Sector: Technology
Country: Japan