SoftBank to Buy Back $3.4 Billion in Shares

SoftBank Group announced a modest investment gain of 1.9 billion yen ($12.9 million) for its Vision Fund tech investment arm in the fiscal first quarter ending in June, marking a return to profitability. Despite this gain, the Vision Fund overall reported a significant loss of 204.3 billion yen, contrasting sharply with a profit of 159.77 billion yen in the same quarter last year. The company is also initiating a share buyback program, planning to repurchase up to 6.8% of its shares, amounting to 500 billion yen ($3.4 billion). The recent fiscal year ended in March saw SoftBank achieve its first full-year gain since 2021, driven by a surge in technology stocks and strong performances from key investments. Notable holdings include Arm and self-driving startup Wayve, which management believes position the company to benefit from the burgeoning AI sector. The firm’s financial recovery has been bolstered by substantial gains from its investments in Alibaba and T-Mobile, contributing to a net profit of 10.5 billion yen, a significant turnaround from a loss of 316.2 billion yen in the previous year. In a press conference, SoftBank's finance chief Yoshimitsu Goto refrained from commenting on discussions with individual investors but emphasized that the decision to initiate the buyback was made independently by the company. The strategic move comes as investment firm Elliott Management has been advocating for such a program, reflecting a broader trend of shareholder engagement in corporate governance.