After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan&#39;s SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading startups.

According to sources with direct knowledge of the matter, the solar-to-tech conglomerate is seeking to secure a piece of India&#39;s industry leaders in everything from payment systems to online shopping and groceries, in a series of deals that would shake up the $65 billion sector.

Among the most high-profile plans is SoftBank&#39;s push to engineer a merger between Snapdeal, the No. 3 player in one of the world&#39;s most competitive online markets and one of its biggest Indian investments to date, and market leader Flipkart.

The deal could be finalised as soon as next week, one of the sources said.

SoftBank has poured roughly $1 billion into Snapdeal since 2014, but competition in e-commerce has risen dramatically with US&nbsp;giant Amazon cranking up its presence and taking the No. 2 spot from Snapdeal.

Besides Snapdeal, SoftBank is also close to finalising a cash infusion of more than $1 billion into Alibaba-backed digital payments firm Paytm - another leader in a highly competitive sector - giving it a more direct say in that group too, according to one source familiar with discussions.

Media reports have separately linked SoftBank to a tie-up between grocery delivery group Grofers, in which it has invested roughly $70 million, and market leader and rival BigBasket.

SoftBank, Snapdeal, Paytm and BigBasket did not respond to requests for comment. A spokesman for Grofers said the company did not comment on merger speculation.

Land of opporunity

At the heart of the push is the charismatic Masayoshi Son, SoftBank&#39;s founder and chairman, the sources said. Son has taken a more active role in the group globally since last year, when he pushed aside his heir apparent, Nikesh Arora.

SoftBank is best-known for its hugely lucrative early stage bet in Chinese e-commerce giant Alibaba Group, in which it is still the single largest investor. But it has also been a long-time supporter of India - and with some success.

&quot;Son is thinking India is the place where he will create one or two Alibabas,&quot; said one of the sources familiar with SoftBank ambitions, adding Son sees the country right now as the &quot;land of golden opportunity&quot;.

SoftBank is the biggest investor in India&#39;s leading ride-share player Ola, which competes with Uber, and its top hotel aggregator Oyo. Son and other partners have also pledged to pour $20 billion into solar projects in the energy-hungry South Asian nation.

&quot;They are getting into sectors where the big differentiator, firstly, is going to be technology, of course,&quot; said the same source.

&quot;Secondly, also sectors that need large amounts of capital, so you can browbeat or elbow out people with your capital.&quot;

A Flipkart-Snapdeal combination would create just such a e-commerce behemoth. Flipkart, though battling Amazon, has maintained its pole position and last month it raised $1.4 billion from a trio of cash-rich and tech savvy players that include eBay, Tencent and Microsoft. It also bought eBay&#39;s Indian operations as part of the deal.

Meanwhile, SoftBank poured cash into Snapdeal, but Son began to lose patience as it was outpaced by Amazon, said a source at Snapdeal and the source familiar with SoftBank&#39;s aspirations. SoftBank has already begun talks with Flipkart&#39;s largest investor, Tiger Global, to buy a stake, the two sources said.

To push through the tie-up, SoftBank was likely to invest about $1 billion in Flipkart, both via a direct cash infusion and by buying equity stakes in investors such as Tiger Global, another source said, adding that Snapdeal investors were expected to get one Flipkart share for every 10 Snapdeal shares.

Flipkart did not respond to requests for comment, while a spokeswoman for Tiger Global said the hedge fund did not speak to the media about its investments.

Further consolidation

Forging all these deals could prove to be a challenge. One source familiar with the Grofers-BigBasket talks said a deal, while being considered, looked unlikely as BigBasket has a cash-burn rate significantly higher than that of Grofers, making it hard to justify a deal.

Moreover, even if the deals do click, there is no guarantee bets like a Flipkart-Snapdeal combine will pay off. &quot;In the short-term, yes,&quot; said Gartner analyst Sandy Shen. &quot;But things move quickly in e-commerce and Amazon is a strong player with global scale, technology and operational expertise.&quot; Still, a Flipkart-Snapdeal combine is likely to revive hopes of a broader consolidation in Indian e-commerce.

Alibaba had explored the possibility of combining Snapdeal and Paytm&#39;s e-commerce business with Flipkart about a year ago, one of the sources said, but talks broke down over price.

Industry watchers believe that Paytm&#39;s marketplace and Tiger Global-backed ShopClues could eventually fold into Flipkart if the tie-up and Paytm investment goes through.

(Reuters)

SoftBank has poured roughly $1 billion into Snapdeal since 2014

After ploughing about $2 billion into minority stakes in Indian e-commerce businesses over the past few years, Japan's SoftBank is upping the stakes, looking to play consolidator and take a more active role at a trio of leading startups. According to sources with direct knowledge of the matter, the solar-to-tech conglomerate is seeking to secure a piece of India's industry leaders in everything from payment systems to online shopping and groceries, in a series of deals that would shake up the $65 billion sector. Among the most high-profile plans is SoftBank's push to engineer a merger between Snapdeal, the No. 3 player in one of the world's most competitive online markets and one of its biggest Indian investments to date, and market leader Flipkart. The deal could be finalised as soon as next week, one of the sources said. SoftBank has poured roughly $1 billion into Snapdeal since 2014, but competition in e-commerce has risen dramatically with US giant Amazon cranking up its presence and taking the No. 2 spot from Snapdeal. Besides Snapdeal, SoftBank is also close to finalising a cash infusion of more than $1 billion into Alibaba-backed digital payments firm Paytm - another leader in a highly competitive sector - giving it a more direct say in that group too, according to one source familiar with discussions. Media reports have separately linked SoftBank to a tie-up between grocery delivery group Grofers, in which it has invested roughly $70 million, and market leader and rival BigBasket. SoftBank, Snapdeal, Paytm and BigBasket did not respond to requests for comment. A spokesman for Grofers said the company did not comment on merger speculation. Land of opporunity At the heart of the push is the charismatic Masayoshi Son, SoftBank's founder and chairman, the sources said. Son has taken a more active role in the group globally since last year, when he pushed aside his heir apparent, Nikesh Arora. SoftBank is best-known for its hugely lucrative early stage bet in Chinese e-commerce giant Alibaba Group, in which it is still the single largest investor. But it has also been a long-time supporter of India - and with some success. "Son is thinking India is the place where he will create one or two Alibabas," said one of the sources familiar with SoftBank ambitions, adding Son sees the country right now as the "land of golden opportunity". SoftBank is the biggest investor in India's leading ride-share player Ola, which competes with Uber, and its top hotel aggregator Oyo. Son and other partners have also pledged to pour $20 billion into solar projects in the energy-hungry South Asian nation. "They are getting into sectors where the big differentiator, firstly, is going to be technology, of course," said the same source. "Secondly, also sectors that need large amounts of capital, so you can browbeat or elbow out people with your capital." A Flipkart-Snapdeal combination would create just such a e-commerce behemoth. Flipkart, though battling Amazon, has maintained its pole position and last month it raised $1.4 billion from a trio of cash-rich and tech savvy players that include eBay, Tencent and Microsoft. It also bought eBay's Indian operations as part of the deal. Meanwhile, SoftBank poured cash into Snapdeal, but Son began to lose patience as it was outpaced by Amazon, said a source at Snapdeal and the source familiar with SoftBank's aspirations. SoftBank has already begun talks with Flipkart's largest investor, Tiger Global, to buy a stake, the two sources said. To push through the tie-up, SoftBank was likely to invest about $1 billion in Flipkart, both via a direct cash infusion and by buying equity stakes in investors such as Tiger Global, another source said, adding that Snapdeal investors were expected to get one Flipkart share for every 10 Snapdeal shares. Flipkart did not respond to requests for comment, while a spokeswoman for Tiger Global said the hedge fund did not speak to the media about its investments. Further consolidation Forging all these deals could prove to be a challenge. One source familiar with the Grofers-BigBasket talks said a deal, while being considered, looked unlikely as BigBasket has a cash-burn rate significantly higher than that of Grofers, making it hard to justify a deal. Moreover, even if the deals do click, there is no guarantee bets like a Flipkart-Snapdeal combine will pay off. "In the short-term, yes," said Gartner analyst Sandy Shen. "But things move quickly in e-commerce and Amazon is a strong player with global scale, technology and operational expertise." Still, a Flipkart-Snapdeal combine is likely to revive hopes of a broader consolidation in Indian e-commerce. Alibaba had explored the possibility of combining Snapdeal and Paytm's e-commerce business with Flipkart about a year ago, one of the sources said, but talks broke down over price. Industry watchers believe that Paytm's marketplace and Tiger Global-backed ShopClues could eventually fold into Flipkart if the tie-up and Paytm investment goes through. (Reuters)

How Japan's SoftBank is powering India's e-commerce

In what goes to on be a new development in India&rsquo;s e-commerce space, online grocery delivery service BigBasket and smaller rival Grofers India have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources.

If the merger goes through, SoftBank Group, which is an existing investor in Grofers, will participate in a $60 million to $100 million funding round in the merged company, the report added.

The talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 million to $200 million, Mint added.

Online grocery sales are a fast growing segment in India&#39;s e-commerce industry as more consumers log in to internet for their purchases.

India&rsquo;s burgeoning online retail market appears to be undergoing a transition phase. Recently, e-commerce firm Flipkart raised $1.4 billion in its biggest fundraising to date. Chinese social media and entertainment firm Tencent Holdings, the world&#39;s biggest software company Microsoft and online marketplace eBay participated in the funding round, and this would go on to value Flipkart at $11.6 billion.

Amazon, on the other hand, last year had said it would invest over $5 billion in India. It recently expanded into online video and grocery shopping, seeking to expand aggressively in a country where a rising middle class is increasingly shopping online.

Besides, electronics payments provider Paytm is also in talks with Japan&#39;s SoftBank Group to raise $1.2-$1.5 billion in cash, making the latter one of the largest shareholders in the fintech start-up, reported Mint newspaper.

The deal, which could increase Paytm&#39;s valuation to $7 billion to $9 billion, will see SoftBank buying some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma beside investing money in the company, the report said.&nbsp; Paytm may also buy Snapdeal-owned payments rival Freecharge, as part of the deal, added the report.

(WION)

India?s burgeoning online retail market appears to be undergoing a transition phase.

In what goes to on be a new development in India’s e-commerce space, online grocery delivery service BigBasket and smaller rival Grofers India have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources. If the merger goes through, SoftBank Group, which is an existing investor in Grofers, will participate in a $60 million to $100 million funding round in the merged company, the report added. The talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 million to $200 million, Mint added. Online grocery sales are a fast growing segment in India's e-commerce industry as more consumers log in to internet for their purchases. India’s burgeoning online retail market appears to be undergoing a transition phase. Recently, e-commerce firm Flipkart raised $1.4 billion in its biggest fundraising to date. Chinese social media and entertainment firm Tencent Holdings, the world's biggest software company Microsoft and online marketplace eBay participated in the funding round, and this would go on to value Flipkart at $11.6 billion. Amazon, on the other hand, last year had said it would invest over $5 billion in India. It recently expanded into online video and grocery shopping, seeking to expand aggressively in a country where a rising middle class is increasingly shopping online. Besides, electronics payments provider Paytm is also in talks with Japan's SoftBank Group to raise $1.2-$1.5 billion in cash, making the latter one of the largest shareholders in the fintech start-up, reported Mint newspaper. The deal, which could increase Paytm's valuation to $7 billion to $9 billion, will see SoftBank buying some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma beside investing money in the company, the report said. Paytm may also buy Snapdeal-owned payments rival Freecharge, as part of the deal, added the report. (WION)

BigBasket, Grofers may merge; Is India?s online market undergoing a major shift?

Apple Inc confirmed on Wednesday its plans to invest $1 billion in a tech fund being set up by Japan&#39;s SoftBank Group Corp.

SoftBank has said it is investing at least $25 billion in the fund and has been in talks with Saudi Arabia&#39;s Public Investment Fund for an investment that could be as much as $45 billion.

&quot;We believe their new fund will speed the development of technologies which may be strategically important to Apple,&quot; company spokesman Josh Rosenstock told Reuters.

SoftBank has also said that it plans to make future large-scale investments via the tech fund, rather than on its own.

Reuters reported in December, citing sources familiar with the matter, that Apple had held talks with SoftBank about the investment.

SoftBank confirmed that Apple invested, said Benjamin Spicehandler, an outside public relations representative for SoftBank.&nbsp;

He added that Foxconn, Oracle founder Larry Ellison`s family office and chipmaker Qualcomm also have said they intend to invest in the fund.

(Reuters)

SoftBank has also said that it plans to make future large-scale investments via the tech fund, rather than on its own

Apple Inc confirmed on Wednesday its plans to invest $1 billion in a tech fund being set up by Japan's SoftBank Group Corp. SoftBank has said it is investing at least $25 billion in the fund and has been in talks with Saudi Arabia's Public Investment Fund for an investment that could be as much as $45 billion. "We believe their new fund will speed the development of technologies which may be strategically important to Apple," company spokesman Josh Rosenstock told Reuters. SoftBank has also said that it plans to make future large-scale investments via the tech fund, rather than on its own. Reuters reported in December, citing sources familiar with the matter, that Apple had held talks with SoftBank about the investment. SoftBank confirmed that Apple invested, said Benjamin Spicehandler, an outside public relations representative for SoftBank. He added that Foxconn, Oracle founder Larry Ellison`s family office and chipmaker Qualcomm also have said they intend to invest in the fund. (Reuters)

Apple plans to invest $1 billion in a tech-fund by SoftBank

US President-elect Donald Trump on Tuesday &nbsp;announced a $50 billion Japanese telecoms investment designed to create 50,000 US jobs, claiming another high-stakes personal win for the American economy before kicking off the second leg of a victory tour.

Trump provided no details on the jobs or investment, which he trumpeted following a meeting with Japanese self-made billionaire Masayoshi Son at his headquarters in New York.

The real estate tycoon whose election stunned the world first tweeted the announcement, then strode into the lobby of Trump Tower to brief reporters in&nbsp;person.

&quot;This is Masa of SoftBank from Japan and he&#39;s just agreed to invest $50 billion in the United States and 50,000 jobs,&quot; the president-elect told reporters, standing with his arm around a grinning Son.

&quot;He&#39;s one of the great men of industry, so I just want to thank you very much,&quot; added Trump before turning to shake the Japanese magnate&#39;s hand.

&quot;I just came to celebrate his new job,&quot; said Son, repeating his commitment and saying that SoftBank would be investing in startup companies in America.

In an interview with The Wall Street Journal, Son said the money will be coming from a $100 billion investment fund that he is setting up with Saudi Arabia&#39;s sovereign wealth fund and other potential partners.

Trump, who defeated Hillary Clinton by promising to create jobs and campaigning as a political outsider who could shake up the system, claimed the Japanese investment as a personal coup.

&quot;Masa said he would never do this had we (Trump) not won the election!&quot; the maverick Republican wrote on Twitter.

It marked the second time in a week Trump has claimed to have acted personally to save or create American jobs -- allowing himself to make good on a key campaign promise -- after a deal to keep hundreds of manufacturing jobs in Indiana.

That agreement with air-conditioning plant Carrier was announced ahead of his inaugural victory rally in Ohio, and has raised his stock among Republican and Democrat voters alike, a Politico/Morning Consult poll found Tuesday.&nbsp;

&nbsp;

(AFP)

Trump said the Japanese investment will create 50,000 US jobs

US President-elect Donald Trump on Tuesday announced a $50 billion Japanese telecoms investment designed to create 50,000 US jobs, claiming another high-stakes personal win for the American economy before kicking off the second leg of a victory tour. Trump provided no details on the jobs or investment, which he trumpeted following a meeting with Japanese self-made billionaire Masayoshi Son at his headquarters in New York. The real estate tycoon whose election stunned the world first tweeted the announcement, then strode into the lobby of Trump Tower to brief reporters in person. "This is Masa of SoftBank from Japan and he's just agreed to invest $50 billion in the United States and 50,000 jobs," the president-elect told reporters, standing with his arm around a grinning Son. "He's one of the great men of industry, so I just want to thank you very much," added Trump before turning to shake the Japanese magnate's hand. "I just came to celebrate his new job," said Son, repeating his commitment and saying that SoftBank would be investing in startup companies in America. In an interview with The Wall Street Journal, Son said the money will be coming from a $100 billion investment fund that he is setting up with Saudi Arabia's sovereign wealth fund and other potential partners. Trump, who defeated Hillary Clinton by promising to create jobs and campaigning as a political outsider who could shake up the system, claimed the Japanese investment as a personal coup. "Masa said he would never do this had we (Trump) not won the election!" the maverick Republican wrote on Twitter. It marked the second time in a week Trump has claimed to have acted personally to save or create American jobs -- allowing himself to make good on a key campaign promise -- after a deal to keep hundreds of manufacturing jobs in Indiana. That agreement with air-conditioning plant Carrier was announced ahead of his inaugural victory rally in Ohio, and has raised his stock among Republican and Democrat voters alike, a Politico/Morning Consult poll found Tuesday. (AFP)

Trump trumpets $50bn investment deal with Japan's SoftBank ahead of victory rally

Japan&#39;s SoftBank Group Corp is set to agree a deal to buy British chip designer ARM Holdings PLC for around $32 billion, a source familiar with the deal said, adding an announcement could come later in the day. 
 
ARM, the most valuable tech company listed in London, is a major presence in mobile processing, with its processor and graphics technology used by Samsung, Huaweiand Apple in their in-house designed microchips. 
 
SoftBank could not immediately be reached for comment. ARM officials were not reachable outside market hours. 
 
If confirmed, the deal would be one of the largest in European technology to date and SoftBank&#39;s largest ever - outranking the $22 billion acquisition of a controlling stake in wireless operator Sprint in 2013, a deal that left the group with hefty debts as the carrier&#39;s losses mounted. 
 
Softbank has announced plans over the past few weeks to raise $14 billion with the sale of assets including shares in Chinese e-commerce giant Alibaba - unusual for a group that has rarely exited investments. But analysts had expected it to use the cash to reduce debt or give shareholders a windfall by buying back its own shares. 
 
An announcement on Monday would come less than a month after the Japanese group&#39;s founder, Masayoshi Son, scrapped his plans to retire, effectively pushing out his heir apparent, former Google executive Nikesh Arora. 
 
Son, known as &quot;Masa&quot;, said then that he wanted to stay on to develop Sprint but also to complete the transformation of SoftBank into a tech investment powerhouse. Among the triggers for what Son has called the next &#39;paradigm shift&#39; in technology are artificial intelligence and the internet of things - a new focus for ARM as it weathers a smartphone slowdown. 
 
It bought UK imaging specialist Apical earlier this year, a company that specialises in technology to allow computers to analyse images - replicating human vision using software. 
 
A deal would also come just weeks after Britain voted to leave the European Union, a decision that has battered sterling and bolstered the yen. 
 
Though it has warned on the staffing impact of Brexit, ARM Holdings&#39; revenues are largely in dollars and it has a diverse portfolio of technologies it licenses. Its shares have actually climbed almost 17 per cent since the vote. 
 
According to a Financial Times report earlier on Monday, SoftBank will pay 17 Pounds in cash for each ARM share, a premium of more than 40 per cent to Friday&#39;s close at 11.89 Pounds. 
 
SoftBank shares were not traded on Monday, a market holiday in Tokyo. ($1 = 0.7539 Pounds) 
 
(Reuters)

If confirmed, the deal would be one of the largest in European technology to date and SoftBank's largest ever

Japan's SoftBank Group Corp is set to agree a deal to buy British chip designer ARM Holdings PLC for around $32 billion, a source familiar with the deal said, adding an announcement could come later in the day. ARM, the most valuable tech company listed in London, is a major presence in mobile processing, with its processor and graphics technology used by Samsung, Huaweiand Apple in their in-house designed microchips. SoftBank could not immediately be reached for comment. ARM officials were not reachable outside market hours. If confirmed, the deal would be one of the largest in European technology to date and SoftBank's largest ever - outranking the $22 billion acquisition of a controlling stake in wireless operator Sprint in 2013, a deal that left the group with hefty debts as the carrier's losses mounted. Softbank has announced plans over the past few weeks to raise $14 billion with the sale of assets including shares in Chinese e-commerce giant Alibaba - unusual for a group that has rarely exited investments. But analysts had expected it to use the cash to reduce debt or give shareholders a windfall by buying back its own shares. An announcement on Monday would come less than a month after the Japanese group's founder, Masayoshi Son, scrapped his plans to retire, effectively pushing out his heir apparent, former Google executive Nikesh Arora. Son, known as "Masa", said then that he wanted to stay on to develop Sprint but also to complete the transformation of SoftBank into a tech investment powerhouse. Among the triggers for what Son has called the next 'paradigm shift' in technology are artificial intelligence and the internet of things - a new focus for ARM as it weathers a smartphone slowdown. It bought UK imaging specialist Apical earlier this year, a company that specialises in technology to allow computers to analyse images - replicating human vision using software. A deal would also come just weeks after Britain voted to leave the European Union, a decision that has battered sterling and bolstered the yen. Though it has warned on the staffing impact of Brexit, ARM Holdings' revenues are largely in dollars and it has a diverse portfolio of technologies it licenses. Its shares have actually climbed almost 17 per cent since the vote. According to a Financial Times report earlier on Monday, SoftBank will pay 17 Pounds in cash for each ARM share, a premium of more than 40 per cent to Friday's close at 11.89 Pounds. SoftBank shares were not traded on Monday, a market holiday in Tokyo. ($1 = 0.7539 Pounds) (Reuters)

SoftBank set to buy UK chip designer ARM for around $32 billion

China&#39;s biggest gaming group Tencent Holdings Ltd is to buy a majority stake in Finland&#39;s Supercell, which makes the &#39;Clash of the Clans&#39; mobile game, from SoftBank Group Corp, in a deal valued at roughly $8.6 billion. 
 
The purchase will expand Tencent&#39;s interests overseas, as the Chinese video game and social network group still relies mainly on its home market even though it has stakes in various foreign studios like Epic Games and Riot Games. 
 
Tencent will acquire about 84.3 per cent of Supercell via a wholly-owned consortium, including all of SoftBank&#39;s 72.2 per cent stake, it said on Tuesday. The sale is the biggest ever deal in gaming merger and acquisitions. 
 
The consortium will open up to co-investors, though Tencent expects to maintain a 50 per cent voting interest, it said. 
 
Supercell, also creator of Boom Beach and Hay Day, has a handful of successful games and gets a significant amount of revenue from in-game purchases, helping it to avoid the problems faced by the likes of rival Rovio Entertainment, which has failed to create a new hit game since its 2009 launch of Angry Birds. 
 
The Finnish company will now receive Tencent&#39;s backing as it pushes more aggressively into China&#39;s large online gaming market. 
 
With just 180 employees, Supercell had pre-tax profit of 880 million Euros with sales of 2.1 billion Euros ($2.38 billion) last year, putting the six-year-old firm into the list of largest Finnish companies measured by earnings. 
 
Clash of Clans, the world&#39;s number one grossing mobile game last year, is a war strategy game in which players build fortresses, form clans and battle it out with other clans in a Medieval-style fantasy world. 
 
Supercell&#39;s current management will keep their operational independence and the company will remain in Finland, Tencent&#39;s statement said. 
 
For SoftBank, the Tencent deal will mark its third major asset reshuffle in the past month. Softbank is seeking to bolster its finances following its 2013 acquisition of a majority stake in struggling US wireless carrier Sprint Corp. 
 
SoftBank said the latest sale would yield a return of around 2.9 times its original investment. It expects to book a 600-billion Yen ($5.74 billion) pre-tax profit this financial year from the sale. 
 
The Japanese media and telecoms company this month said it would sell $10 billion worth of shares in Chinese e-commerce giant Alibaba Group Holding Ltd to cut debt, as well as a decision to sell its stake in GungHo Online Entertainment Inc back to the mobile game maker for 73 billion Yen. 
 
In a surprise move, SoftBank said on Tuesday, President Nikesh Arora would resign as of its Wednesday shareholder meeting, less than two years since he joined the group. 
 
Tencent said it expected the Supercell deal to close in the third quarter of 2016. The Chinese company made 32 billion Yuan ($4.86 billion) revenues in the first three months of 2016, of which over half came from gaming. 
 
(Reuters)

The maker of hit games Boom Beach and Hay Day now has Tencent's backing as it pushes into China's large gaming market

China's biggest gaming group Tencent Holdings Ltd is to buy a majority stake in Finland's Supercell, which makes the 'Clash of the Clans' mobile game, from SoftBank Group Corp, in a deal valued at roughly $8.6 billion. The purchase will expand Tencent's interests overseas, as the Chinese video game and social network group still relies mainly on its home market even though it has stakes in various foreign studios like Epic Games and Riot Games. Tencent will acquire about 84.3 per cent of Supercell via a wholly-owned consortium, including all of SoftBank's 72.2 per cent stake, it said on Tuesday. The sale is the biggest ever deal in gaming merger and acquisitions. The consortium will open up to co-investors, though Tencent expects to maintain a 50 per cent voting interest, it said. Supercell, also creator of Boom Beach and Hay Day, has a handful of successful games and gets a significant amount of revenue from in-game purchases, helping it to avoid the problems faced by the likes of rival Rovio Entertainment, which has failed to create a new hit game since its 2009 launch of Angry Birds. The Finnish company will now receive Tencent's backing as it pushes more aggressively into China's large online gaming market. With just 180 employees, Supercell had pre-tax profit of 880 million Euros with sales of 2.1 billion Euros ($2.38 billion) last year, putting the six-year-old firm into the list of largest Finnish companies measured by earnings. Clash of Clans, the world's number one grossing mobile game last year, is a war strategy game in which players build fortresses, form clans and battle it out with other clans in a Medieval-style fantasy world. Supercell's current management will keep their operational independence and the company will remain in Finland, Tencent's statement said. For SoftBank, the Tencent deal will mark its third major asset reshuffle in the past month. Softbank is seeking to bolster its finances following its 2013 acquisition of a majority stake in struggling US wireless carrier Sprint Corp. SoftBank said the latest sale would yield a return of around 2.9 times its original investment. It expects to book a 600-billion Yen ($5.74 billion) pre-tax profit this financial year from the sale. The Japanese media and telecoms company this month said it would sell $10 billion worth of shares in Chinese e-commerce giant Alibaba Group Holding Ltd to cut debt, as well as a decision to sell its stake in GungHo Online Entertainment Inc back to the mobile game maker for 73 billion Yen. In a surprise move, SoftBank said on Tuesday, President Nikesh Arora would resign as of its Wednesday shareholder meeting, less than two years since he joined the group. Tencent said it expected the Supercell deal to close in the third quarter of 2016. The Chinese company made 32 billion Yuan ($4.86 billion) revenues in the first three months of 2016, of which over half came from gaming. (Reuters)

China's Tencent buys Finland's Supercell for $8.6 billion in the biggest ever deal in gaming merger and acquisitions

Japanese mobile carrier SoftBank announced Wednesday they are planning to sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt load. 
 
The move will reduce SoftBank&#39;s 32.2 per cent holding in the Chinese company to about 28 per cent with the sale, it said, adding that proceeds would be earmarked to pay down debts. 
 
SoftBank said in a statement it has &quot;approved of a series of capital raising transactions, which involve monetising a portion of the shares of Alibaba&quot;. 
 
The Japanese mobile carrier, led by Masayoshi Son, first made its investment in Alibaba in 2000. 
 
&quot;This investment has been phenomenally successful and, over the past 16 years, we have built a close relationship, working together on 
many exciting projects,&quot; Son said in the statement, adding that the pair would continue to work together. 
 
Led by Son, SoftBank launched an acquisition streak that saw it pick up an assortment of firms, including its $16 billion purchase of US-based mobile giant Sprint. 
 
But the buying spree has put pressure on SoftBank&#39;s finances, and the firm also announced earlier this year it would buy back more than 14 per cent of its stock at a cost of about 500 billion yen. 
 
&nbsp;As per the official statement, Son and Alibaba&#39;s executive chairman Jack Ma will remain on the board of the other&#39;s firms 
 
&quot;Under the leadership of Masayoshi Son, SoftBank has been a highly valued, long-time partner of Alibaba for more than 16 years, and we look forward to continuing our strong partnership together,&quot; Ma said in a separate statement. 
 
&quot;As SoftBank looks to strengthen its own balance sheet, Alibaba determined that it was the best use of our capital to re-invest in our own business through an efficient buyback of a large number of shares in our own company that is accretive to our stockholders.&quot; 
 
SoftBank said Alibaba itself would buy back at least USD 2.0 billion worth of the shares it is selling. 
 
SoftBank has seen its profits boosted thanks to Alibaba&#39;s record USD 25 billion market debut in 2014 in New York. 
Today&#39;s announcement came after the Chinese online giant disclosed last week that US securities regulators were probing its accounting for possible violations of US securities laws. 
 
SoftBank shares rose more than two percent shortly after the opening bell today. 
 
Alibaba&#39;s US-listed shares declined 3.1 per cent yesterday after the announcement of SoftBank&#39;s planned share sale. (AFP)

Japanese mobile carrier SoftBank today said it will sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt.

Japanese mobile carrier SoftBank announced Wednesday they are planning to sell at least $ 7.9 billion (USD) of its stake in Chinese e-commerce giant Alibaba, as it looks to pay down a whopping debt load. The move will reduce SoftBank's 32.2 per cent holding in the Chinese company to about 28 per cent with the sale, it said, adding that proceeds would be earmarked to pay down debts. SoftBank said in a statement it has "approved of a series of capital raising transactions, which involve monetising a portion of the shares of Alibaba". The Japanese mobile carrier, led by Masayoshi Son, first made its investment in Alibaba in 2000. "This investment has been phenomenally successful and, over the past 16 years, we have built a close relationship, working together on many exciting projects," Son said in the statement, adding that the pair would continue to work together. Led by Son, SoftBank launched an acquisition streak that saw it pick up an assortment of firms, including its $16 billion purchase of US-based mobile giant Sprint. But the buying spree has put pressure on SoftBank's finances, and the firm also announced earlier this year it would buy back more than 14 per cent of its stock at a cost of about 500 billion yen. As per the official statement, Son and Alibaba's executive chairman Jack Ma will remain on the board of the other's firms "Under the leadership of Masayoshi Son, SoftBank has been a highly valued, long-time partner of Alibaba for more than 16 years, and we look forward to continuing our strong partnership together," Ma said in a separate statement. "As SoftBank looks to strengthen its own balance sheet, Alibaba determined that it was the best use of our capital to re-invest in our own business through an efficient buyback of a large number of shares in our own company that is accretive to our stockholders." SoftBank said Alibaba itself would buy back at least USD 2.0 billion worth of the shares it is selling. SoftBank has seen its profits boosted thanks to Alibaba's record USD 25 billion market debut in 2014 in New York. Today's announcement came after the Chinese online giant disclosed last week that US securities regulators were probing its accounting for possible violations of US securities laws. SoftBank shares rose more than two percent shortly after the opening bell today. Alibaba's US-listed shares declined 3.1 per cent yesterday after the announcement of SoftBank's planned share sale. (AFP)

SoftBank to sell part of stake in China's Alibaba for $7.9 billion

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