SoftBank selling off most of its Alibaba stake: report

SoftBank is reportedly selling almost all of its remaining shares in Alibaba, limiting its exposure to China and raising cash as its tech investments take a hit in a market downturn.

The Japanese group has sold about $7.2 billion worth of Alibaba shares this year, after selling a record $29 billion last year, according to the Financial Times.

The sale will eventually cut SoftBank’s stake to just 3.8%, according to regulatory filings.

FOX Business has reached out to Softbank for comment.

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The logo of Alibaba Group is lit up at its office building in Beijing, China. (REUTERS/Tingshu Wang / Reuters)

The Japanese investor, led by billionaire founder Masayoshi Son, once owned as much as 34% of Alibaba. 

At the end of February, SoftBank had only 98 million shares of Alibaba left to sell, according to the FT’s estimates. 

The move by Softbank comes as the company plans a major listing of UK chip designer Arm as it seeks to recover from a series of failed investments and unprecedented losses. 

SoftBank Group Corp Chairman and CEO Masayoshi Son. ( REUTERS/Toru Hanai / Reuters Photos)

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The longtime investor is pulling back from Alibaba as the tech company is in the midst of a reorganization preparing to split into six separate entities.

Son bought into Alibaba more than two decades ago with a $20 million investment after meeting founder Jack Ma.

Ma’s history of speaking his mind turned into a liability in October 2020 when he criticized China’s state-owned banks at a financial summit in Shanghai.

Jack Ma, billionaire founder of Alibaba Group. (REUTERS/Charles Platiau/File Photo/File Photo/File Photo / Reuters Photos)

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Beijing then suspended the blockbuster IPO of Alibaba’s sister company Ant, as President Xi Jinping launched a campaign to rein in the country’s tech groups.

Since then, Alibaba’s share price has fallen 70%.

Alibaba shares closed in New York on Wednesday at $93.84.

They once traded at $317 per share.