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Son, the CEO of SoftBank (SFTBF), opened up on some of his recent interactions with the Ali Baba (BABA) co-founder during a results presentation Monday, saying the two billionaires kept in touch after Ma virtually disappeared from public view for several months.
Alibaba has long been the crown jewel of SoftBank’s investment portfolio. And Son and Ma are known to be close – the Japanese entrepreneur invested $ 20 million in Alibaba over 20 years ago, turning that bet into a bet that was worth $ 60 billion when Alibaba went public in 2014.
But “[we’re] not always [talking] about the company, “Son said in response to questions about China’s regulatory crackdown on Alibaba and its subsidiary, Ant Group. Ma” likes to draw, “and” sent me many drawings, “the tycoon said. Japanese.
Son added that he usually responds with his own designs, sometimes including before he goes out for the night. “About thirty minutes, before going to bed, I draw pictures … [and] show him.”
Alibaba has suffered a crisis of confidence in recent months as it faces close scrutiny from Chinese regulators. The stock fell 25% at the end of last year, although it recovered some ground in early 2021.
The saga began last fall, when Ant Group was preparing for what would be the world’s largest IPO. Then Ma accused the authorities of stifling innovation and criticized Chinese banks for their “pawnshop” mentality. Within days, regulators called Ma and Ant executives to a meeting, then suspended the IPO altogether.
Since then, the landscape has deteriorated for Alibaba and other Chinese tech companies, as regulators announced an antitrust investigation into Alibaba. Ma shut up and canceled an appearance at a high-profile event before briefly reappearing last month, appearing in an online video where he spoke with teachers in China.
Son called Ma a lifelong “friend and comrade”, and previously said that before the coronavirus pandemic, the two had dinner every month to catch up with their work lives and lives. The two men were members of the boards of directors of each other’s companies until last year.
“[SoftBank] continues to be Alibaba’s largest shareholder and Alibaba remains our largest investment asset, ”Son wrote in an annual report for the company last July.
Asked Monday about regulatory risk, Son dismissed the concerns, arguing that such moderation was healthy.
“These are necessary regulations, necessary laws,” he told reporters. “I think what they’re discussing right now is something that has already been done in the United States. [and] European countries, and this does not exceed what we have seen in [those] countries.”
Son also used Alibaba as a case study for its own success on Monday, calling it a “golden egg” that had been laid by SoftBank’s “goose”. “I understand that a lot of people were worried,” he said with reference to Alibaba. “The business itself is actually running smoothly and growing.”
When asked why he thought Ma chose to speak out against the Chinese government, Son hesitated.
“I don’t know the details,” he says. “So I hesitate to make a … comment on this.”
– Laura He and Jill Disis contributed to this report.
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