RESCUE PLAN WORKING FOR SOFTBANK, FOUNDER CLAIMS
SoftBank founder and CEO Masayoshi Son knows that his company's staggering losses shook a lot of investors. But he's confident that his recovery strategy is working, Kaori Enoji and Jill Disis reported for CNN Business late on June 25, 2020.
"It made a lot of people worry," Son said Thursday, referring to how badly the Japanese conglomerate was hammered during the last fiscal year. SoftBank reported an annual operating loss of 1.36 trillion yen ($12.7 billion) — its worst ever — because of a series of tech bets gone bad and the coronavirus pandemic.
Son's tone Thursday during an online meeting of SoftBank shareholders was more upbeat than last month when he reported the company's record-breaking losses. He added that people thought the company was "Softpunku," using wordplay in Japanese that can translate roughly to "SoftBankrupt" in English.
Within the last few months, SoftBank has taken dramatic measures to shore up its finances, including a plan to sell $41 billion in assets to buy back shares and reduce the company's heavy debt load. So far, Son said, the company has completed 80% of the asset sales it intends to make, though he did not elaborate on the remaining portion. Earlier this week, SoftBank confirmed that it was offloading roughly $20 billion worth of stock in T-Mobile.