Headlines: Why Did Sun Zhengyi, Japan'S Richest Man, Suddenly Sell Alibaba Shares?

On the beginning of June,

Group's largest shareholder

Softbank announced in a statement the previous day that it plans to sell Alibaba shares worth about $7 billion 900 million in stages.

This is the first sale of Softbank investment Alibaba in 16 years.

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According to the current market value of Alibaba, Sun Zhengyi, chairman of Softbank group, has made a profit of more than 1000 times.

He said, "facts have proved that our investment in Ali has been an amazing success."

However, since Softbank revealed its selling of Ali after its launch, Softbank announced on 2 th that the sale of China's Alibaba giant group will increase the value of US $1 billion, which is worth 8 billion 900 million US dollars when it has been accumulated at the end of May.

Softbank introduces the reason, "buyer's demand is more than expected."

Then: Beijing time, June 3rd, reported that after the exercise of an additional trust in the purchase of Trust Securities, soft silver has increased to $10 billion through the sale of Alibaba shares.

In this regard, outside comments in order to reduce the huge debt of Softbank, Sun Zhengyi had to reluctantly give up.

For Softbank, selling Ali stock is the worst policy. It is well known that when Ali was listed, Softbank did not have any plans to reduce Ali shares, but less than two years from Ali listing. Why did Softbank sell a huge sale plan?

For Sun Zhengyi, the shrewd Softbank helm, at present, Softbank has encountered an unprecedented crisis. Since 2013, Softbank has been heavily indebted. In those days, Softbank invested 22 billion US dollars to gain the controlling power of Sprint.

In order to compete with the other two largest US carriers, Softbank was forced to invest more money.

But after the acquisition, Sprint losses continued to increase and customers continued to lose. In the 2014-15 fiscal year, Sprint suffered a loss of $1 billion 500 million.

According to Bloomberg statistics, Softbank already has more than 100 billion dollars in debt. Because of its huge size, Moodie, the US rating agency, has reduced Softbank's long-term credit rating to junk level.

In response to the declining stock prices, Softbank offered $1 billion 90 million and $4 billion 400 million in share repurchase plans in the third quarter of 2015 and the first quarter of 2016, but failed to pull the stock price up.

Softbank net profit continued to decline by 30% in the first quarter of 2016.

Sun Zhengyi needs more cash to fill the huge mire of the acquisition of Sprint Corp.

Sun Zhengyi himself said in February that it may take two years to solve the problem of customer churn and loss.

Bloomberg commented: this means that Sprint still needs more than seven years of loss.

The financial times estimates that Sprint will probably run out of funds by the end of 2016, according to the burning rate of Sun Zhengyi's price war in the US.

Sprint said to the financial times that if the company needs to inject new capital, Sun Zhengyi will provide support: "we have a big shareholder who is very willing to provide support. If the company needs more capital, he will give it."

So the next thing is...

In June 1, 2016, Alibaba group announced that it agreed to buy its $2 billion worth of Alibaba shares from Softbank group, and that the required funds would be paid by Alibaba itself.

In addition, Alibaba partners, composed of Alibaba founders and executives, agreed to subscribe another $400 million of Alibaba shares from Softbank group.

Following Ali's acceptance of the SEC inquiry, in June 1st, Alibaba's largest shareholder, Softbank group, announced that it would reduce Alibaba shares.

Softbank founder Sun Zhengyi has said he will not sell Ali shares.

It is speculation that whether or not the US Securities and Exchange Commission's inquiry has affected Softbank shareholding confidence.

On this issue, Ma said that Sun Zhengyi's reduction is their own financial considerations. Alibaba's increase is due to confidence in the future.

This is not the first time Sun Zhengyi has cash in. When Alibaba traded with YAHOO in 2005, Sun Zhengyi had hundreds of millions of dollars in cash.

"Sun Zhengyi wants to reduce liabilities and decide to sell Alibaba stock. We support it.

We are proud that Alibaba can make money for shareholders. The more shareholders make money, the more they will invest in China in future.

Ma Yun said today that Alibaba has ample cash and optimistic performance in the future. This Alibaba's holdings have both opportunities to invest in its own companies, have more shares, and also make the shareholding structure more pparent, healthy and sustainable.

In the future, Alibaba will continue to increase its holdings if there are sufficient opportunities for strategic capital reserves.

Some people even noticed that not only did they sell Alibaba shares, but Sun Zhengyi was also prepared to give up their "cash cows" and developed the Supercell, the world's best game company, such as tribal conflicts.

According to foreign media reports, Softbank intends to sell shares of Supercell and has negotiated with the buyer Tencent.

The valuation of Supercell in the sale of shares may exceed US $5 billion.

Some people joked that this Sun Zhengyi simply helped Ma Huateng to snipe Ma Yun.

But Reuters has an interesting comment: "Softbank will increasingly become a company that specializes in acquiring and selling assets."

But the real reason may be: in June 2nd, the Softbank group was raising more than 1 trillion yen by selling shares and issuing corporate bonds.

Most believe that Softbank is preparing for the new big takeover.

The biggest focus is the trend of YAHOO's equity held by YAHOO in the US.

After the news of the sale of Ali shares, on the Tokyo stock market in June 1st, Softbank shares rose 3% from the previous trading day to 6443 yen, the highest since 2016.

Most of the market is optimistic about this attitude, SMBC Kikuchi Go, nixing securities, said, "Softbank's position has changed, and began to convert the investment assets into the profit".

Sun Zhengyi said at the shareholders' meeting: "when I first proposed that Softbank's revenue would reach trillions of yen, everyone thought I was talking big. But in the year when Softbank hit the biggest loss in history, I said we would realize trillions of yen profits soon, and everyone would laugh at it.

I now believe that no matter what scale we measure, we will become the largest enterprises in the world, whether it is revenue, profit or market value.