As a director, Sun just graduated from Alibaba. He announced at SoftBank Group’s annual general meeting on June 25 that he would step down from Alibaba Group’s board of directors. A month ago, SoftBank announced that Mr Ma would step down as a director of SoftBank Group, and June 25 was his last day in office.
The two partners, who have known each other for 21 years, have made achievements with each other, and are finally moving away. SoftBank group by investing in Alibaba has earned more than 1,700 times the return, Sun justice also became famous in the first world war, and all the way up, in the investment empire he built, until into the cycle of the sharing economy. Alibaba has grown step by step, moving from an e-commerce platform to a digital economy, committed to building the business infrastructure of the future, and the baton is in the hands of Mr. Zhang, who Mr. Sun calls a “very trusted leader.”
On this day, Jack Ma left Sun Just, Sun just bid farewell to Jack Ma, but they don’t have to say goodbye, after all, SoftBank Still owns 25.8% of Alibaba. In his speech, Mr. Sun said his resignation from the board of Alibaba Group and Mr. Jack’s departure from the board did not mean there was any disagreement between the two, and that Alibaba remained a jewel in the crown of SoftBank’s portfolio.
Sunma’s two-way choice
Wu Ying, chairman of Zhongze Jiamen Investment Co., Ltd., recalled the details of Ma Yun’s meeting with Sun Justice: “Ma Yun waited two hours downstairs, giving him six minutes, that is, to talk about your own business model, only six minutes.” “
At the time, SoftBank Group had invested in Internet companies such as Yahoo! to look for investments in the Chinese market, while Jack Ma, who later called himself “regretful founding Alibaba”, was looking for money everywhere. Sun has been in contact with 20 start-ups, one of which is Alibaba. Wu said that like Ma Yun to see Sun Justice, as well as Beijing Xingen Investment Management Co. , Ltd. founding partner Zeng Qiang, at the time he was also engaged in the e-commerce industry, and Sun justice has verbally promised to invest $28 million for him.
But the end of the story is that Sun’s favor of justice did not fall to Zeng Qiang. Sun said later that He was so impressed that he asked him what he wanted to do, unlike the others who asked for money after coming up with a business plan and explaining the business model, “Ma Yun was the only one who didn’t ask me for money.” Mr. Sun said Mr. Ma had only talked about his vision for the future, about why he wanted to help China’s small and medium-sized enterprises and how to realize their dreams.
Ma Yun in Sun’s heart is a young man with light in his eyes, full of passion and energy, so much so that he did not hesitate to clap board: “I want to invest in you.” In the end, SoftBank injected $20m into Alibaba, a money that helped it survive the dotcom bubble. In Ma Yun’s view, Sun justice in terms of investment may be the world’s most courageous person, he is like Jin Yong’s Qiao Feng, big wisdom if stupid. As a result, the two warships advanced farther towards their respective seas, and the hands of the two captains were already clenched together. “We’re friends all our lives. Ma Yun wrote in the preface to Sun’s biography, Fly higher.
Since then, Sun has invested in Alibaba again, and by 2014 when Alibaba listed on the New York Stock Exchange, SoftBank group held nearly 34 percent of Alibaba, almost its largest shareholder. Alibaba’s shares were issued at $68, up 38.07 percent to $93.89, giving Alibaba a market value of more than $231.4 billion and SoftBank’s stake in Alibaba about 2,900 times more. To this day, Alibaba is still Sun Justice’s most successful investment, which is Sun Justice and Jack Ma’s two-way choice.
SoftBank Group’s Strike and Defeat
Twenty years later, Sun didn’t find the next Alibaba, and he didn’t wait for the second Jack Ma.
In 2013, SoftBank bought a 70 percent stake in Sprint, the US mobile operator, for $22 billion, with the aim of changing the landscape of the US mobile industry through a merger, but in fact, the merger with T-Mobile was a long-term deal until this year. In those seven years, Sprint’s market capitalization and market share have shrunk. SoftBank is considering selling its $20 billion t-Mobile stake to reduce its debt, Bloomberg reported.
In 2016, SoftBank bought ARM, a British chip design company, for $32 billion, a gamble in Sun’s career that he believes ARM will play a crucial role in the Internet of Things wave. However, on the first trading day after the announcement, SoftBank’s shares plunged 10.3 per cent, the last time it fell sharply or took a 70 per cent stake in Sprint. Investors think Sun is too aggressive, after all, the 43% premium is too high, ARM and SoftBank can produce synergies is still unknown.
But Sun didn’t stop, setting up a $100 billion Vision Fund in 2016 to kick off his global investment journey. AI, chips, autonomous driving, e-commerce… Its extensive field, in the process, Sun justice found a piece of the “sharing economy” of peach blossom source.
Uber, Didi Chuxing, Grab, WeWork, OYO… Sun justice in the sharing economy continued to bet, but also suffered a series of blows. Uber’s listing is breaking, layoffs and losses are in tatnight; WeWork is soaring, but the IPO is 18 bends; the OYO model is in doubt, and the world’s many retreats… Under the outbreak, the sharing economy is even worse. The impact is clear, with SoftBank reporting an operating loss of 1.4 trillion yen ($13 billion) for the fiscal year ended March 31, the biggest since its inception. SoftBank explained that the losses stemfrom a collapse in the value of several technology companies it has bet on through its Vision Fund. In an interview with Forbes, Mr. Sun also acknowledged that at least 15 of the 88 companies invested by Vision Fund will go bankrupt as spending tightens and the epidemic shakes the economy. He also revealed that the pace of investment in the future will slow down.
Compared with Ma Yun, who has announced his retirement and is in the education business, Sun is still running for his cause, “crazy” as always. The difference is that he is no longer focusing too much on metrics such as GMV, revenue and number of users, but stresses that companies should go public “to be profitable, cash-flow-rich and sustainable” and more concerned with cash flow performance.
Ambitions are still there, and Sun and Alibaba Group’s board have said goodbye, but they have never stopped their desire to discover the next Alibaba. Alibaba, who had “eyes and eyes”, responded: “Thanks to Mr. Sun for his confidence and trust in Alibaba for 20 years, and for his long-term support for SoftBank.” “
The two captains are on different routes, will Sun just welcome the next “long-term support” and will bring him a huge return on the investment object? Then bet a few more times, after all, he has already drawn up a 300-year vision plan for SoftBank, not to mention that he has not left the choppy sea for a moment.