SoftBank Group’s shares skyrocketed after the company unveiled a massive $100 billion stock buyback plan aimed at boosting investor confidence and addressing its undervalued stock. The Japanese investment giant’s announcement marks one of the largest repurchase programs in corporate history, signalling a bold move to restore market faith amid recent challenges.
SoftBank’s CEO, Masayoshi Son, outlined the buyback plan during a shareholder meeting, emphasising the group’s commitment to returning value to shareholders. The repurchase program will be funded through the company’s significant cash reserves and proceeds from asset sales. Son highlighted that the move reflects confidence in SoftBank’s long-term growth trajectory and the intrinsic value of its portfolio companies.
The buyback comes as SoftBank seeks to recover from a turbulent period marked by fluctuating valuations of its investments, particularly in technology and startups. The company’s Vision Fund has faced criticism over some underperforming assets, but recent successful exits and improved market conditions have created an opportunity to deploy excess capital strategically.
SoftBank’s announcement had an immediate impact on its stock price, with shares surging more than 10% in Tokyo trading. Analysts noted that the buyback signals strong corporate governance and aligns with global investor expectations for companies to proactively address undervaluation issues.
The plan also underscores SoftBank’s shift in strategy to balance growth investments with shareholder returns. By leveraging its substantial asset base, the group aims to strengthen its financial position while maintaining the flexibility to pursue new opportunities in technology and innovation.
As SoftBank navigates a competitive investment landscape, the buyback program is seen as a bold step to reaffirm its market leadership. The company’s focus on unlocking value for shareholders and addressing market concerns highlights its adaptability in a rapidly evolving business environment. With this move, SoftBank aims to re-establish investor confidence and solidify its position as a pioneering force in global investment.
