Prime Highlights:
- SoftBank reports a $19 billion gain on its Vision Fund, driven by investments in OpenAI and PayPay.
- The company announces a four-for-one stock split to make shares more accessible to investors.
Key Facts:
- SoftBank’s stock is up over 140% this year despite a recent dip that wiped out nearly $50 billion in market value.
- The company will invest an additional $22.5 billion in OpenAI through Vision Fund 2, reinforcing its commitment to technology ventures.
Background:
SoftBank is expanding its technology investments and reported strong gains from its robotics and other tech ventures. The company posted a $19 billion gain on its Vision Fund in the fiscal second quarter, mainly from its investments in OpenAI and its digital payments platform, PayPay.
SoftBank will do a four-for-one stock split to make shares easier to buy. Despite a recent dip, its stock is up over 140% this year.
SoftBank’s technology revenues reached record levels in the quarter ending September 30, with growth of 93% compared to last year. Gains from its OpenAI investment alone totaled 2.157 trillion yen ($14 billion) during the quarter. Overall, the conglomerate’s profit surged to 2.502 trillion yen, far exceeding the LSEG consensus estimate of 206.89 billion yen, while revenue reached 1.92 trillion yen, slightly above expectations.
The Vision Fund, SoftBank’s technology-focused investment vehicle, includes both investment performance and other financial factors such as administrative expenses and gains attributable to third-party investors. Its value had increased by 4.8 billion yen in the previous fiscal quarter.
SoftBank will invest an additional $22.5 billion in OpenAI through Vision Fund 2, strengthening its commitment to the tech sector. This comes after OpenAI restructured as a public benefit corporation, combining its nonprofit roots with for-profit operations.
SoftBank’s stock fell last week, losing nearly $50 billion, but analysts say its focus on robotics and technology gives it a strong foundation. With high profits and record revenues, the company is well-positioned for future growth.
