Softbank

Japanese Internet and telecommunication company, Softbank is based in Tokyo. Currently, the company holds about 37% shares of Alibaba. The Alibaba Group is a privately owned online business by Chinese group. It includes a shopping search engine, cloud computing, online portals and a lot more. It is infact, one of the largest e-retailers, after eBay and Amazon. The current value of The Alibaba Group is estimated approximately $120 billion. Taking into consideration the consistent rise in the online industry, SoftBank Corporation has decided to keep its stocks in Alibaba Group Holding. They have decided to maintain the same percentage if the company decides to continue its operations in the same way, and work towards becoming the world’s largest online business.

The General Manager of SoftBank’s finance department, Yoshimitsu Goto has claimed that the Alibaba group Holdings is one of the essential companies in their group, which is why they have decided to stick with it for a very long time. According to shareholders, it is important for The Alibaba Group to continue increasing its value, so they can offer more benefits to the shareholders in the future. This is also particularly important for the company (SoftBank, in this case), keeping in view the fact that it owns one-third of the Alibaba. Perhaps, Yoshimitsu has refused to say anything about the current earnings of the company or how they can affect the consolidated statement of the SoftBank Corporation.

According to expert financial analysts, The Alibaba Chinese Group seems to have a huge number of plans, and initial public offering is one of them that can incredibly boost the overall value and reputation of the company. The initial estimation lies between $55 and $120 to no less than $190 billion, which seems like a staggering sum. On the other hand, the privately-owned Chinese e-retailer has managed to double its net income in the second quarter by making more than $700 million. This is certainly a very encouraging amount to look at, both for the Softbank Corporation and all the other shareholders.

Overview Of The Alibaba Group Holdings In Initial Public Offering

Despite the fact that the net income of Alibaba group has increased substantially, they do not have any kind of positive, as well as negative impact on the financial counts of the SoftBank yet. This might take some time, may be a few more months. In the last 15 years, SoftBank has made an investment of over $20 million in the Alibaba Group and the company has even made sure that the CEO of the Chinese group is now one of the board members. Softbank Corporation is owned and operated by Masayoshi Son. He is one of the richest men in Japan with an estimated net worth of over $14 million. On the other hand, Alibaba was created in 1999, and the founder of the company has net worth of over $3.5 billion.

According to the market reports, the Alibaba Group is considering an IPO in the US and also plans to go public in the later part of this year. However, this is not the only company that is planning to bring some major changes in business strategies. SoftBank is also involved in a dozens of deals since 2013 and paying billions of dollars to numerous companies as part of those deals.