Since founding Softbank in 1981, Masayoshi Son has been known to take enormous risks, most of which have paid off. Today, he’s chairman and CEO of a global telecom and Internet giant valued at close to $60 billion and is the second richest man in Japan with a personal net worth of $17 billion.
On Monday, the company announced a bid which is probably the biggest bet of Son’s life, its plan to acquire British microprocessor firm ARM Holdings for $32 billion. ARM’s technology can be found in nearly every smartphone, tablet and mobile device on Earth. Its microprocessor has long been the gold standard for low power designs essential for mobile applications.
The question is, what’s that got to do with Softbank’s core business as a wireless and Internet service provider? Acquiring most of Sprint for $20 billion in 2013 was risky enough, but at least the goal was clear: to turn around the struggling company and gain a foothold in the U.S. wireless market.
What’s Son’s plan with respect to the ARM deal? Where are the strategic synergies required for acquisitions to make sense?
Those questions clearly spooked investors, who drove shares of Softbank down more than 10% this week. There may not be synergies and the goal may not be obvious, but that doesn’t mean Son doesn’t have a bold vision of where the world is heading. And he aims to make sure Softbank is right smack in the middle of the action.
By: Steve Tobak (Fox Business).
Photo: Getty Images (via Wired).
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
For The #FacebookTeam