SoftBank cuts stakes in Alibaba

 

Japanese tech investor SoftBank Group Corp. is selling nearly all of its remaining stake in Chinese internet giant Alibaba Group Holding Ltd., which was once its most valuable investment, the Financial Times reported.  SoftBank has offloaded around $7.3B in Alibaba shares this year after selling a record $29B worth of shares in 2022, according to regulatory filings. SoftBank has sold the shares through prepaid forward contracts, which will now reduce its stake in Alibaba to only 3.8%. Last year, SoftBank lowered its stake from nearly 24% to under 15%. SoftBank made a $20M investment into Alibaba over two decades ago. Around three years ago, the Chinese e-commerce giant was SoftBank’s most valuable investment. The move comes after SoftBank's flagship Vision Fund, its tech-focused investment arm, posted its fourth consecutive quarterly loss in February. Reports note SoftBank has been reducing its exposure in China following economic turmoil during the pandemic and heightened regulatory scrutiny by Chinese regulators.