Beijing (PingWest)—SoftBank, the Japanese tech conglomerate, said on Monday that it plans to peddle or monetize up to 4.5 trillion yen ($41 billion) of assets over the next year to buy back shares and reduce debt.
To complete the $41 billion sale plan, the company's stake in Chinese e-commerce giant Alibaba may play a critical role, Bloomberg said.
The plan was proposed as the financial market plummeted and the company's stock and portfolio companies were hit hard.
The conglomerate has been struggling with a growing financial squeeze on the company and the $100 billion Vision Fund, which invests in startups like the co-working firm WeWork and ride-hailing company Uber. According to the SoftBank's financial report, it's profit fell to 55 billion yen ($ 500 million) in the previous quarter after it lost 700 billion yen ($ 6.4 billion) in the July-September quarter.
Meanwhile, SoftBank indicated it would give up a deal of buying $3 billion worth of stock in WeWork. The deal was raised to rescue the company after a disastrous initial public offering attempt, WSJ reported.
The company’s single largest asset is its 26% stake in Alibaba (BABA), which alone is worth about $126 billion, more than twice the company’s market valuation of about $60 billion.
SoftBank has powerful companies under its wing, including Alibaba, Yahoo! Japan and the British IOT company Arm.