SoftBank Group founder Masayoshi Son ended his company’s annual shareholder meeting with a surprise on Thursday by announcing he is stepping down from the board of Chinese e-commerce titan Alibaba.
The billionaire said his departure should not be interpreted as signifying any disagreements, even though Alibaba co-founder Jack Ma is quitting SoftBank’s board at the same time. Mr Ma and Mr Son have maintained a close friendship since the Japanese entrepreneur was an early investor in Alibaba and helped it along to its current value of roughly $600 billion (Dh2.2 trillion), calling it the crown jewel of SoftBank’s portfolio.
“It’s not like we had a fight,” Mr Son said during the virtual shareholder meeting. “This was perfectly amicable.”
While the mutual departures are unlikely to have an immediate impact on either company, they mark the end of an era. The two men are among the most successful entrepreneurs of their generation and have been able to rely on each other’s advice for decades. Mr Son was on Alibaba’s board as it went public in 2014 in the largest initial public offering in history. When SoftBank ran into trouble with investment losses this year, Mr Son was able to use his Alibaba stake to raise much-needed capital.
“The joint board membership was a big positive for both companies because it gave them a way to benchmark their respective business models,” said Michiaki Tanaka, a business school professor at Rikkyo University in Tokyo. “Not having that board-level contact is a big loss.”
Alibaba remains Mr Son’s most successful investment by far and SoftBank’s most valuable asset. In early 2000, Mr Son invested $20 million into the then-unknown web portal connecting Chinese manufacturers with overseas buyers, a stake that is now worth more than $150bn. That spectacular return cemented his reputation as an investor and later helped him raise the $100bn Vision Fund. Mr Son has previously spoken highly of Mr Ma.
“He had no business plan, zero revenue,” Mr Son said about Mr Ma on The David Rubenstein Show. “But his eyes were very strong. I could tell from the way he talked, he has charisma, he has leadership.”
Mr Son is known for anointing the entrepreneurs he finds particularly promising as “the next Jack Ma,” and Alibaba has long served as the standard against which he has judged SoftBank’s other start-up investments. But his recent track record has been spotty. Starting with WeWork’s failed initial public offering last year, Mr Son has suffered a string of setbacks at portfolio companies including Wag Labs, Zume Pizza and Brandless. SoftBank lost almost $18bn writing down the value of its start-up companies in the last fiscal year.
Still, Mr Son struck an optimistic note at the shareholder meeting Thursday. He began the presentation to investors in typical fashion, reaffirming his conviction that a global digital transformation and the advent of artificial intelligence – both accelerated during the pandemic –will help his investments in the likes of TikTok-owner ByteDance and British chip designer Arm. He again said the market was underestimating SoftBank’s potential, arguing that the Japanese giant’s shareholder value now stood at $218bn, more than double its current market capitalisation.
Coming off the deal to sell a stake in T-Mobile US that should net SoftBank as much as $20bn, Mr Son is shoring up his company’s finances by offloading assets, including $11.5bn from issuing contracts to sell Alibaba stock. SoftBank has now completed 80 per cent of its envisioned ¥4.5tn (Dh154bn) of asset sales designed to bankroll stock buybacks and slash debt to reassure investors.
A shareholder asked at the Thursday meeting how many of the 88 companies SoftBank’s Vision Fund currently has on its books will be the next Alibaba. Mr Son’s answer was that there are one or two “mini-Alibabas”.
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
A cryptocurrency primer for beginners
Cryptocurrency Investing for Dummies – by Kiana Danial
There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine.
Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.
Although cryptocurrencies are a fast evolving world, this book offers a good insight into the game as well as providing some basic tips, strategies and warning signs.
Begin your cryptocurrency journey here.
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Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
Other key dates
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Finals draw: December 2
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Finals (including semi-finals and third-placed game): June 5–9, 2019
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Euro 2020 play-off draw: November 22, 2019
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Euro 2020 play-offs: March 26–31, 2020
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
HAJJAN
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The%20specs
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Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
