Japanese tycoon Masayoshi Son, Expected To Make Billions on Alibaba.
The famous Japanese tycoon Masayoshi Son has made billion so dollars from his smart investment on the Chinese e-commerce giant Alibaba, prompting people to name him “the Warren Buffett of Asia.”
Son’s SoftBank had decided to make a $20 million investment into Alibaba about 14 years ago, when the Chinese Web port was still in its infacny. The company went on to become one of the largest e-commerce group based in China and just recently filed for an initial public offering in the U.S., expected to become one of the largest IPO to ever exist.
At the current time, Alibaba has an expected valuation exceeding over $160 billion, and SoftBank’s 34.4 percent stake that’s been estimated at $58.8 billion, according to calculations done by Bloomberg’s. Even Alibaba founder Jack Ma and his fellow executives, and venture capital back such as Silver Lake Management, do not have a chance in matching Son’s return on investment.
With successful deal has lead to further enhancing Son’s reputation as one of the world’s most savviest investors an provides more capital to a man on the prowl for deals.
“The guy is the Warren Buffett of Asia,” the news agency quoted as saying Greg Tarr, managing partner at seed fund CrossPacific Capital in Palo Alto, California.”In venture capital, the way we measure success is how much was put in initially and what’s the return. Every now and then you have something worth 500 times, like a Twitter or an Alibaba.”
SoftBank was originally founded during 1981 as a software retailer, and is currently a phone company that stretches over two continents. In the U.S., Son managed to acquire the carrier Sprint during July 2013, in order to compete against top competitors such as Verizon and AT&T.
It’s also been rumored of him being interested in acquiring the majority stake in T-Mobile US and European wireless operators.
Beside the telecom sector, Son has made a $8.5 billion offer towards Vivendi SA’s Universal Music Group, but was rejected, Following the IPO of Alibaba, Softbank will continue to keep at least a 30 percent stake within the company and claim a board seat. Alibaba earlier filed an initial prospectus for public offering of its share within the U.S. The company stated that it seeking to raise $1 billion from its IPO, but the actual IPO amount is expected to be even much higher.