By Mayumi Negishi
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 8, 2017).
TOKYO -- SoftBank Group Corp. Chief Executive Masayoshi Son
expressed eagerness to invest in Uber Technologies Inc. or Lyft
Inc. to gain access to the U.S. ride-hailing market after similar
investments in Asia.
"We are interested in discussing with Uber. We are also
interested in discussing with Lyft," the SoftBank chief said Monday
at a news conference, adding that he wasn't sure what form an
investment would take. "The U.S. is a very big market, the most
important market, so we are definitely very much interested."
Mr. Son, founder and head of the Japanese technology and
telecommunications group, has stepped up his already frenetic
deal-making pace recently as he approaches his 60th birthday later
this week.
He said he was close to a deal involving SoftBank-controlled
U.S. wireless operator Sprint Corp. that would trigger
consolidation in the U.S. telecom industry.
SoftBank and Sprint are brokering "multiple possibilities," he
said. He declined to comment on whether a combination with T-Mobile
US Inc. -- which Mr. Son has pursued on and off for years -- was on
the table.
His war chest is generated from solid revenue from SoftBank's
telecom operations in Japan, a lucrative early investment in
Chinese e-commerce company Alibaba Group Holding Ltd., and $93
billion in committed capital in the SoftBank Vision Fund, which was
formed with Saudi government investment.
Already, SoftBank is a big investor in the three largest Asian
ride-hailing companies: Singapore's GrabTaxi Holdings Pte., India's
Ola and China's Didi Chuxing Technology Co. It has also invested in
semiconductors, robotics and other areas relevant to autonomous
driving.
By expanding its reach to Uber or Lyft, SoftBank could help
determine the industry's direction in adopting autonomous-driving
technology, Mr. Son said.
The technology "is definitely coming, and when that comes, this
ride-sharing business becomes even more important," he said.
An Uber spokeswoman and a Lyft spokesman declined to comment on
Mr. Son's remarks.
The Wall Street Journal has reported that SoftBank approached
San Francisco-based Uber recently about a multibillion-dollar stake
but that the negotiations were preliminary and any deal would
likely be on hold until Uber hires a new CEO.
Since the Vision Fund was started in May, SoftBank has announced
new investments in companies such as shared office-space provider
WeWork Cos., Indian mobile-payments firm Paytm, robotics firm
Boston Dynamics, self-driving technology firms Nauto and Brain
Corp., and many others.
The biggest deal in dollar terms -- if it happens -- would
likely be the one involving Sprint. After buying a controlling
stake in Sprint in 2013, Mr. Son said uniting Sprint and T-Mobile
was the only way to take on U.S. wireless giants Verizon
Communications Inc. and AT&T Inc. in an industry facing
mounting capital expenditures. Opposition from Obama administration
regulators led him to shelve the deal, but in April he reiterated
that a T-Mobile deal was his first choice.
SoftBank is considering making a formal offer to acquire Charter
Communications Inc., the U.S.'s second-largest cable firm, The Wall
Street Journal reported last month. Last week, Charter said it
wasn't interested in buying Sprint.
How much control Sprint and SoftBank would wield in any deal
depends on how potential partners value Sprint's spectrum, which
Mr. Son has touted as essential for fifth-generation, or 5G,
networks. Sprint's market capitalization is roughly one-third of
Charter's and less than T-Mobile's.
"When the world goes to 5G, Sprint's spectrum will be extremely
valuable, " Mr. Son said. "The telecom industry has not fully
recognized its value so far, but I think it does now."
Juggling multiple deals has put Mr. Son on a hectic travel
schedule. "Even sleeping seems like a waste of time," he said at a
SoftBank gathering last month. At an annual shareholders' meeting
in June, Mr. Son had a fever and a cold, prompting shareholders to
ask about his health.
At Monday's news conference, he apologized for a sore throat
that prevented him from raising his voice and reflected on his
accomplishments in his first 60 years.
"Looking back, I have so much to regret. I get so frustrated at
my own shortcomings," he said. Mr. Son said he would give himself a
score of 28 out of 100. "But this is not the end," he said.
The Vision Fund, which is consolidated in SoftBank earnings,
generated Yen105.2 billion in income in the quarter ended in June,
erased by unrealized investment losses, for a net loss of Yen1.6
billion before interest, taxes, depreciation and amortization.
The company logged a 98% fall in quarterly net profit to Yen5.5
billion, its gains in its telecom operations in the U.S. and in
Japan negated by losses on derivatives related to its sale of some
of its Alibaba shares last year to finance its acquisition of
British chip designer ARM Holdings Inc.
Write to Mayumi Negishi at mayumi.negishi@wsj.com
(END) Dow Jones Newswires
August 08, 2017 02:47 ET (06:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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