Son announced his resignation from Alibaba's board, effective the same day, at the end of SoftBank’s annual shareholder meeting, reported the Wall Street Journal.
Son’s resignation matches the day on which Alibaba CEO Jack Ma’s resignation from Softbank’s board comes into effect. Ma had announced his resignation last month.
The SoftBank chief executive said he was stepping down of his own volition, and that the parting from Alibaba was smooth. Son made clear that there was no discord with Alibaba.
Son had been on Alibaba’s board since 2005 and Ma on Softbank’s since 2007.
Why It Matters
In 2000, Son had invested $20 million in Alibaba, which has paid SoftBank handsomely. The investment supports the Japanese group’s share price, credit rating, and funding activities, according to WSJ.
Last month, SoftBank raised $11.5 billion by selling Alibaba’s stock in an effort to bolster its balance sheet.
The sale of shares came after its Vision Fund saw a decline in the value of its tech investments.
For the financial year spanning April 2019 and March 2020, SoftBank incurred an operating loss of $12.7 billion.
On Wednesday, SoftBank OTC shares closed 4.59% lower at $24.73. On Thursday, the company’s shares traded 0.24% lower at $50.24 at press time in Tokyo.
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