Elliott Takes Aim at Softbank… Again 6/5/24
TechCheck
CNBC
4.5 • 66 Ratings
🗓️ 5 June 2024
⏱️ 6 minutes
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| 0:00.0 | The activist investor, Elliot management, rebuilding its stake in the Japanese tech investing firm Soft Bank, now calling for a buyback. |
| 0:07.5 | Our dear Djibosa has the story for today's Tech Check, and we were also wondering if this was why Arm was up so much today. |
| 0:13.3 | Well, certainly for Elliot, it worked the first time. |
| 0:15.4 | So the activist firm is hoping that this playbook is going to work again. |
| 0:19.1 | According to a source familiar, the activist fund has built another position in Soft Bank, this time worth more than $2 billion and it's pushing for a $15 billion buyback. |
| 0:28.5 | At the center of this push, Soft Bank, the conglomerates market value, is far less, worth far less than the sum of its part. |
| 0:36.0 | Just take its 90% stake in Arm alone. |
| 0:38.0 | That is worth some $123 billion, significantly more than Soft Bank's entire market cap in |
| 0:44.5 | Tokyo of 85 billion US dollars. Now there's also its Vision Funds now in the |
| 0:48.8 | black, 2-Mobile and a 10% stake in Soft Bank Corp that's its Telco arm according to my source |
| 0:53.7 | Elliot believes that a buyback would help narrow that gap by boosting Soft Bank |
| 0:58.2 | share price and it would also act as a sign of confidence in Maats Yoshi's |
| 1:02.3 | strategy but guys let's talk about that strategy because it could be at odds with |
| 1:06.1 | such a large buyback you know I love to show softbank presentation slides wherever I can |
| 1:10.8 | this is one from its latest fiscal year results and in very typical |
| 1:15.8 | Masa son's style it underscores is almost ludicrously large ambitions. |
| 1:19.7 | Never mind AGI, which the biggest companies like Open AI and Google are preparing for, |
| 1:24.4 | Masa Sun is already thinking about artificial super intelligence, ASI, or as he puts it here, |
| 1:31.5 | 10,000 times some total of all human intelligence kind of just |
| 1:36.2 | unfathomably large paradigm shifting technology now Masa San has been |
| 1:40.9 | building up his war chest to go on the offense and pursue investments in AI. |
| 1:45.6 | So is he willing right now to put some of those billions aside for a shorter term goal of boosting |
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