Elliott Management Invests $2.5 billion in SoftBank
Recently, Elliott Management revealed that it had accrued a $2.5 billion stake in SoftBank Group. Elliot Management was founded by Paul Singer and is characterized as an activist investor with substantial influence. Currently, the $2.5 billion investment would account for 3% of SoftBank’s market value.
Given this new influence in SoftBank, Elliott Management wants increased transparencies over the investment decisions that SoftBank’s chief executive, Masayoshi Son, pursues. Additionally, Elliott Management wants SoftBank to increase the number of shares it buys back.
“Elliott has engaged privately with SoftBank’s leadership and is working constructively on solutions to help SoftBank materially and sustainably reduce its discount to intrinsic value,” an Elliott spokeswoman said.
Elliot Management is taking a bet on SoftBank. They believe that SoftBank’s share value is heavily discounted because of risky decisions that SoftBank has made, which have not paid off.
For example, the major investment in WeWork, a startup that went from $47 billion in valuation to $8 billion. Additionally, Elliot Management believes the investment is worthwhile since SoftBank’s market value is much lower than the value of its holdings.