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overview
This note considers Softbank, the Japanese internet services,
finance and media group.
It covers -
 introduction
The Softbank group traces its origins to a personal computer
software distribution operation founded in 1981 by Masayoshi
Son (1957- ). It leveraged its dominance in the Japanese
PC software market to expand into publishing (notably
through acquisition of Ziff Davis
IT publications and a 69% stake in Ziff-Davis Inc) and
exhibitions before moving into television production -
undeterred by an abortive move with News
Corp on Asahi TV - and internet-related
services and finance.
Those services include a major stake in Yahoo!
and major dialup, wireless, telephony and broadband operations.
Buoyed by capital raising during the dot-com
bubble Softbank built substantial venture capital,
consumer credit, retail banking (notably the Aozora Bank)
and sharetrading investments.
At its peak in 2000 Softbank's market capitalization was
US$200 billion. It lost US$448 million in the second half
of 2001, with capitalisation sliding to US$30 billion
amid speculation that it would run out of cash by 2005.
Son responded by reducing stakes in key assets such as
Yahoo! and moving out of some holdings such as Aozora
Bank.
The group now centres on connectivity (broadband and telephony)
and publishing, along with a range of overseas investments
and domestic operations (including recruitment services,
venture capital, leasing and insurance).
Despite suggestions that Softbank is becoming a digital
era keiretsu - a family of enterprises linked by cross
shareholdings, loans, directorships and a corporate identity
- it appears to be more of a loose (and opportunistic)
assemblage, with little inter-enterprise support and coordination.
The Softbank corporate site is here.
history
[under development]
In 2005 to fend off a possible Livedoor takeover of Fuji
Television (Japan's largest private television network),
Softbank Investment Corporation - 47% owned by Softbank
- acquired 14.67% of Fuji TV's voting rights by borrowing
shares from Fuji TV shareholder (and Livedoor target)
Nippon Broadcasting System.
In March 2006 Softbank agreed to buy Vodafone's Japanese
mobile-phone unit for US$15.4 billion, an acquisition
partly funded through sale of 0.6% of Yahoo Japan for
US$199 million (leaving Softbank with a 41.3% stake in
the Japanese portal operator).
shape
Softbank is the largest shareholder in Yahoo Japan and
has a 4% stake in Yahoo! Inc along with substantial stakes
in Yahoo's European arms. It runs Japan's second-largest
broadband internet service provider, after NTT. It has
holdings in a wide range of internet and finance-sector
businesses (some quite small), including 39% of Softbank
Investments.
studies
[under development]
 next
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