SoftBank sizes up Lyft and Uber
• Quarterly profit jumps 50% as technology investor includes Vision Fund in results and Nvidia books strong earnings increase
SoftBank Group, an investor in technology start-ups, reported a sharp rise in quarterly profit and said that it would be interested in parking funds in Uber Technologies or Lyft.
SoftBank Group, a prolific investor in global technology start-ups, reported a sharp rise in quarterly profit and said it would be interested in parking funds in ride-hailing companies Uber Technologies, or Lyft in the future.
This is the first time SoftBank has publicly indicated an interest in Uber, having so far put funds into its rival Grab in Southeast Asia and China’s Didi Chuxing.
In July, a media report said Uber shareholders and its board were mulling a stock sale to SoftBank and other investors.
“We are interested in discussing with Uber, we are also interested in discussing with Lyft, we have not decided which way,” SoftBank’s CEO and founder, Masayoshi Son, said.
“Whether we partner and invest in Uber or Lyft, I don’t know what will be the endresult,” he told SoftBank’s firstquarter briefing on Monday.
SoftBank said its quarterly operating profit rose 50% to ¥479bn ($4.32bn) after it included Vision Fund, the largest private equity fund, as a new reportable segment and booked a ¥105bn gain on its stake in graphics chip maker Nvidia.
Vision Fund, backed by investors including Saudi Arabia’s sovereign wealth fund, Apple and Foxconn, has raised more than $93bn. Its backers expect technology investments that will match or beat the 44% internal rate of return that SoftBank says Son has delivered by investing in internet firms in the past 18 years.
Longer term, “if all goes well, Vision Fund should contribute several hundred billion yen in annual revenue”, Son said.
A survey of 20 analysts puts full-year profit at ¥1.16-trillion. SoftBank has not released a forecast for the year to March 2018, citing uncertainty.
SoftBank’s wireless unit,
THERE ARE MULTIPLE POSSIBLE BUSINESS CONSOLIDATION PARTNERS AND NEGOTIATIONS ARE ONGOING
Sprint, is exploring options to boost finances through means such as a merger with T-Mobile US or a tie-up with cable provider Charter Communications.
Sprint, in which SoftBank has about an 80% stake, reported last week a quarterly profit for the first time in three years as a result of cost-cutting efforts.
“There are multiple possible business consolidation partners and negotiations are ongoing,” Son said. He did not comment further. SoftBank shares ended up 2.4% before the results.