His vision fund, with a scale of up to 100 billion US dollars, is known as the universes first venture capital fund.
To some extent, it is because of him that the world in which you and I live is what it is today.
However, Softbank group lost more than 90 billion yuan report card in 2019 fiscal year, which shocked the market.
Since last year, sun Zhengyi, the God of investment, has been frustrated and suffered huge losses in investment. Two old friends who have been with us for more than 10 years have left the board of directors one after another. The voice of soft banks great defeat has been heard.
However, from April to June 2020, Softbank recorded a net profit of 1.26 trillion yen (about RMB 82.2 billion yuan), a year-on-year increase of 11.9%; net sales of 1.45 trillion yen, a year-on-year decrease of 2%.
Behind the recovery, Softbank sold 4.3 trillion yen of assets, accounting for 95% of the previous sales plan; vision fund also turned losses into profits, and the valuations of companies such as Uber and slack, whose bets were also rising.
This time, will sun Zhengyi fall down from the altar or fight this battle?
Younger martial sister will show you the clue.
The reason why Japans richest man abandoned Ma Yun has found out that he met Jia Yueting (source: NetEase Finance and Economics)
Sun Zhengyis youth: University has invention patent
By the mid-1990s, Softbank became Japans largest software distributor and listed in Japan.
At that time, when the Internet began to flourish, sun Zhengyi also began to enter the venture capital circle.
Internet Era: Ali and YAHOO have gone through the Internet bubble.
Among sun Zhengyis numerous Internet investment projects, the two most praised and the highest rate of return on investment are Yahoo and Alibaba.
In 1987, at the suggestion of Bill Gates, sun Zhengyi took a fancy to Ziff Davis, an American computer science magazine. After the acquisition, he asked Ziff Daviess editor, if only one investment object was selected, which one would it be? and the answer was Yahoo.
So in 1995, sun Zhengyi injected $100 million into Yahoo.
On the eve of the collapse of the Internet technology bubble in 2000, YAHOOs market value was as high as $100 billion, and Softbank, which owns 33%, gained 300 times the investment.
The wisdom of venture capital circle is: eight losses in ten projects, one does not lose or earn, and one makes a lot.
Alibaba is the Softbanks most successful investment so far.
Six minutes to invest in Ma Yun also appeared in various chicken soup articles.
In 2000, Softbank invested $20 million in Alibaba, which was only a year old; 14 years later, Alibaba went public, and the value of Softbanks shares increased 2900 times.
Of course, sun Zhengyi stepped on a lot of thunder.
In January 2000, two months before the Internet bubble reached its peak, Sun Zhengyi claimed that through more than 100 investments, it had more than 7% of Global Internet Companys publicly traded value.
But in April of that year, the U.S. stock market collapsed, most of the companies invested in Softbank plummeted, and the market value of Softbank fell by 90% from its peak.
Mobile Internet Era: a $31 billion bet
Shortly after the burst of the Internet bubble, Sun Zhengyi focused on mobile Internet. He was acutely aware that the Internet might shift its focus from desktop computers to mobile phones, so he got a ticket to the times through several investments in communication operators.
In 2006, Softbank acquired Vodafone, a British mobile phone operator, and formally entered Japans domestic mobile phone business. With the acquisition, Softbank won the iPhone franchise in Japan.
At this stage, sun Zhengyi also took a fancy to arm, a chip design company that has grown up due to mobile Internet. We should know that this British enterprise is in a monopoly position in the chip architecture market of mobile devices. The chips it designs are the core of UAVs, smart cities, wearable devices, smart cars and smart homes.
In July 2016, Softbank acquired arm at a premium of 43% at $31 billion, which became the largest acquisition of a technology enterprise in European history at that time.
In fact, the huge imagination space of arm in the field of Internet of things is the key to sun Zhengyis determination, which is his first shot in the next battlefield.
When the time was set back to 2010, sun Zhengyi, for the first time, publicly demonstrated his imagined future world to the outside world, and expressed his hope to establish an organization group that can develop for 300 years, so that human beings can be happier with the help of intelligent machines.
But at that time, it was a world of powers that the participants saw as insane.
In sun Zhengyis vision, arm is the underlying architecture of this huge idea. Chip design will enable the future from various fields such as travel, entertainment, housing, clothing and food.
Arm is the first step. The second step is to set up a huge investment fund -- the 100 billion dollar universe first venture capital fund came into being.
You know, at that time, the global venture capital industrys annual total investment was just over $70 billion, and the $100 billion universe fund was more like a fantasy.
But Sun Zhengyi was different. He moved the real local tyrant, the Saudi royal family. The Arab sovereign wealth fund has provided us $45 billion, the Abu Dhabi Investment Group has contributed US $15 billion. With the blessing of the gold masters father, Softbank has also paid US $28 billion out of its own pocket. The huge vision fund was established in 2017.
Under the background of sun Zhengyis narration about the future world, this 100 billion fund has invested in 88 companies, including Uber, Didi in the field of travel; byte beat in the field of artificial intelligence; Shangtang technology; cruise in the field of automatic driving; nauto in California autonomous driving; Boston power in robotics; Wework in shared office; and hotel giant Oyo
As the saying goes, step too big, easy that what. Especially at a time when change is so fast. Sun Zhengyi, once a trendsetter of the times, ushered in his dark moment after a moment of high light.
In May 2020, Softbank group released the financial report of fiscal year 2019 (April 2019 to March 2020), and the operating loss of 1.4 trillion yen (about RMB 92.9 billion) shocked the market. For a time, the voice of Softbanks great rout has been heard.
The important defeat of Softbank was Wework.
In February 2019, Softbank groups valuation of Wework was still as high as $47 billion when it made additional investment; only seven months later, the valuation was reduced to $7.8 billion.
Softbank invested more than $10 billion in Wework, but the companys valuation plummeted all the way before it went public, eventually hitting its IPO failure.
This tragic scene is probably the nightmare of all investors.
In addition to Weworks own huge losses, we have to mention its founder Adam Neumann.
This Israeli brother, let Sun Zhengyi call him wrong.
For example, he rents part of his own building to a company, which also owns the property company. He also charged the company nearly $6 million for using the word we..
Despite the alleged resignation of Neumann, Softbank also announced in April that it had abandoned its $3 billion bid for Wework. Softbanks early investment of US $10.4 billion in real gold and silver has the risk of losing out of nothing.
Another drag on Softbanks performance is Uber, which has been listed bleeding. Its share price has been weak since its listing, and even cut back for a time, which also made Softbank lose a lot.
Softbank invested in Wework and Uber through the vision fund mentioned above. This fund lost $18 billion in 2019, which directly led to the disastrous performance of Softbank.
In an exclusive interview with Forbes magazine, sun Zhengyi admitted that 15 of the 88 companies invested by vision fund in 2020 will go bankrupt.
Performance shrink, share price pressure, equity pledge ratio increase, vision Fund II financing is in trouble, phase I fund is responsible for 7% of the annual dividend of US $44 billion of preferred shares during the duration of phase I fund, and the global epidemic has profoundly changed many invested companies
These are enough to let Sun Zhengyi and Softbank take a breath.
Old friend: Liu Jing is leaving the board of directors with Ma Yun
Solution: selling Alis stock at a high level to recover cash
In fact, reflection is necessary. Vision fund began to stop donating money in the second half of 2019, even stopped blood transfusion to some companies, and finally decided to give up the acquisition offer for Wework.
And because of his insistence on investment in Wework, sun Zhengyi is suffering from his hard time.
According to the report, before sun Zhengyi decided to invest in Wework, there were many voices of opposition within Softbank, including sun Zhengyis ally for many years and another Japanese legend, founder of the parent company of UNIQLO.
In Softbank, he is one of the few people who can compete with sun Zhengyi. He once said that his duty is to be loyal to sun Zhengyi.
At the end of December 2019, after Wework finally cancelled its listing plan, Liujing also announced his withdrawal from Softbank groups board of directors, where he has been here for 18 years.
Another person who left Softbanks board in June this year is Ma Yun, who is more familiar to all. Prior to his resignation, he served on Softbanks board for 13 years. Soon, sun Zhengyi also announced in public that he would withdraw from the board of directors of Alibaba group, but he also said that he would still hold Alibaba shares for as long as possible.
The friendship of big men is always benefit.
Sun Zhengyi is trying to turn the tide back.
Behind the recovery was Softbanks sale of 4.3 trillion yen of assets, accounting for 95% of the previous sale plan, mainly selling shares of T-Mobile.
The vision fund, which once suffered huge losses, has also turned losses into profits, and its bets on companies such as Uber and slack are also rising.
In July, Softbank also used Alibaba shares to repay $9.4 billion in loans (margin loans).
Softbank has cashed in $13.7 billion from Alibaba shares sold this year since its latest sale, according to the news agency.
The stock price of Alibaba is at a high level. Ma Yun and Cai Chongxin are also selling their shares. They have cashed more than 50 billion yuan.
There are still opportunities. For example, the byte jitter that has attracted much attention recently, and didi has invested in Softbank. When they are listed, Softbank may also make a lot of money.
At a performance meeting on August 11, Mr Sun said Softbank was considering selling part or all of arms shares, although an IPO was still possible. As for sun Zhengyis efforts, the market has given positive feedback, Softbanks share price has doubled from its march low. Cash withdrawal, stock buyback and debt reduction have become the themes of sun Zhengyi in 2020. However, this battle is indeed a tough one. There is no shortcut to business. Capital is the most ruthless. See you next time! (Mary Zhang Mei, intern of NetEase Finance and economics, song Shigang, Qiu Shiying) [email protected] uff09Source: Netease Financial Editor: Guo Chenqi_ NBJ9931
At a performance meeting on August 11, Mr Sun said Softbank was considering selling part or all of arms shares, although an IPO was still possible.
As for sun Zhengyis efforts, the market has given positive feedback, Softbanks share price has doubled from its march low.