Alibaba's Jack Ma bails from SoftBank's board

Japanese Uber-investor refreshing board as Ma heads off to do good works

Alibaba co-founder Jack Ma will step down from the board of Japanese tech conglomerate SoftBank after a 13-year stint.

Ma and SoftBank's founder, Masayoshi Son, have been close friends since SoftBank's bet on Alibaba in 2000. That investment was among SoftBank's most successful and the Japanese company still holds a 25 per cent stake worth around $136bn in the Chinese conglomerate.

Ma's exit is part of his plan to spend more time on philanthropic pursuits. It follows the departure of some of the board's most outspoken critics. Tadashi Yanai, founder and chief exec of Fast Retailing, the parent company of Uniqlo, resigned from the board in 2019 after 18 years' service, leaving only two non-executive directors.

The news of Ma's departure came as SoftBank prepared to report a $12.5bn annual operating loss - its biggest ever. The company, which has large investments in companies such as WeWork, Oyo Hotels, and Uber, has been badly affected by the coronavirus pandemic.

Those results for the fiscal year ended 31 March, were out this morning (PDF). The firm reported an overall operating loss of ¥1.36 trillion in the 12 months and a net loss of ¥961.6bn. This was mostly down to its Vision Fund business alone reporting a ¥1.9 trillion (£14.6bn, $17.7bn) operating loss for the year. Net sales were ¥6.1851 trillion (£47.542bn), up just 1.5 per cent from 2019's ¥6.0935 trillion (£46.834bn).

In addition to Yanai's departure, power struggles inside SoftBank's $100bn Vision Fund last year led to the departure of Mark Schawrtz, the company's longstanding independent director. Shigenobu Nagamori, the founder of motor maker Nidec, also stepped down in 2017.

SoftBank said it will expand its board to 13 members and has proposed three new appointees to be voted on during the company's annual shareholder meeting scheduled for June 25.

The new list includes the group's CFO, Yoshimoto Goto; as well as two independent options: Lip-Bu Tan, chief exec of chip design firm Cadence Design Systems and chairman of venture capital firm Walden International; and Yuko Kawamoto, a professor at Waseda University who specialises in corporate governance.

The election of the two independent candidates meets the demands of Elliott Management, an American activist hedge fund that took a 3 per cent stake worth $2.5bn in the Japanese firm in February. The fund has urged SoftBank to improve board diversity and form a subcommittee to oversee the investment process of its Vision Fund.

Alongside Ma's departure, SoftBank also announced that it would buy back ¥500bn ($4.6bn) of scrip as part of a ¥4.5 trillion ($41.9bn) asset sale program aimed at bolstering its stock price after high-profile startups it had backed lost value. The latest buyback announcement doubles its previous buyback commitment, announced in March. ®

Other stories you might like

  • Experts: AI should be recognized as inventors in patent law
    Plus: Police release deepfake of murdered teen in cold case, and more

    In-brief Governments around the world should pass intellectual property laws that grant rights to AI systems, two academics at the University of New South Wales in Australia argued.

    Alexandra George, and Toby Walsh, professors of law and AI, respectively, believe failing to recognize machines as inventors could have long-lasting impacts on economies and societies. 

    "If courts and governments decide that AI-made inventions cannot be patented, the implications could be huge," they wrote in a comment article published in Nature. "Funders and businesses would be less incentivized to pursue useful research using AI inventors when a return on their investment could be limited. Society could miss out on the development of worthwhile and life-saving inventions."

    Continue reading
  • Declassified and released: More secret files on US govt's emergency doomsday powers
    Nuke incoming? Quick break out the plans for rationing, censorship, property seizures, and more

    More papers describing the orders and messages the US President can issue in the event of apocalyptic crises, such as a devastating nuclear attack, have been declassified and released for all to see.

    These government files are part of a larger collection of records that discuss the nature, reach, and use of secret Presidential Emergency Action Documents: these are executive orders, announcements, and statements to Congress that are all ready to sign and send out as soon as a doomsday scenario occurs. PEADs are supposed to give America's commander-in-chief immediate extraordinary powers to overcome extraordinary events.

    PEADs have never been declassified or revealed before. They remain hush-hush, and their exact details are not publicly known.

    Continue reading
  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading

Biting the hand that feeds IT © 1998–2022