In the ever-changing business wave, another financial tycoon chose to leave. Japan's SoftBank announced that it will fully liquidate its stake in Alibaba, which is undoubtedly shocking news. What does this mean exactly? After Alibaba's complete "sinicization", how should we ordinary people deal with it?
The inside story of SoftBank's exit from Alibaba
SoftBank Group and Alibaba originated more than 20 years ago as a fledgling e-commerce company. As an early major shareholder, SoftBank provided financial support for Alibaba during a critical period and has played an important role in its subsequent development.
However, time has passed, and now SoftBank has chosen to withdraw completely. There are two main reasons for this:
First, SoftBank's own operating conditions are not optimistic. Since the beginning of 2021, SoftBank has suffered heavy losses for several consecutive quarters, amounting to tens of billions of dollars. In order to alleviate the financial pressure, SoftBank had to frequently cash out Alibaba's shares. By September 2022, SoftBank's stake in Alibaba had dropped from 23.7% to 14.6%.
Second, Alibaba's own development has also experienced varying degrees of difficulties. With the tightening of China's antitrust regulations, Alibaba's development has been limited to a certain extent, and its stock price has also shrunk significantly. This makes Alibaba's "sweet and sweet" much less attractive in the eyes of SoftBank.
It seems that the divorce of this pair of well-known enterprises is the result of fundamental changes in the pattern of interests of both parties. SoftBank had to abandon Alibaba in search of new investment hotspots.
Alibaba's path to "sinicization".
SoftBank's "exodus" undoubtedly means that Alibaba has officially completed the process of "sinicization".
What does this mean? On the one hand, it marks that Alibaba has officially gotten rid of the control of foreign capital and has become a real "Chinese enterprise". This will undoubtedly clear the way for its further development in the domestic market, so that it can better adapt to the needs of the Chinese market.
On the other hand, this also means that Alibaba's future development may be more dependent on domestic capital markets and policy support. After all, without "foreign aid" like SoftBank, Alibaba's future funding sources and development direction will be affected more from China.
So, what does this mean for ordinary people? Should we quickly withdraw the money from Yue Bao?
Not necessarily. Although Alibaba's future prospects may be different from those of the past, its position as a domestic e-commerce giant has not wavered. It is believed that with the dual support of policy and capital, Alibaba will continue to maintain strong competitiveness and provide high-quality services to consumers.
Of course, we should also be more vigilant against some potential risks. For example, Alibaba may cater more to the needs of the domestic market in the new stage of development, and even some practices that deviate from the interests of consumers. In this regard, we should maintain a rational and vigilant attitude.
SoftBank's "exodus" has undoubtedly brought new variables to Alibaba's development. But in any case, Alibaba's position as a domestic tech giant has become increasingly solid. We should not be overly pessimistic, but we should remain cautiously optimistic and witness a new chapter with this company.
SoftBank switched to chips to lay out the future
For SoftBank, this exodus is not a slump, on the contrary, it may mark a major shift in their investment strategy.
According to the news, SoftBank is shifting its investment focus to chips and artificial intelligence. After liquidating Alibaba, SoftBank's investment focus is shifting to British chip design company ARM. In addition, SoftBank's Vision Fund also accounts for 29% of the company's net assets, which is obviously the focus of their future efforts.
This shift is not accidental. According to the analysis of industry insiders, the current world is in an artificial situation
The critical stage of the rapid development of intelligent technology, and chips, as the core hardware of artificial intelligence, will surely become the commanding heights of technology enterprises.
As a "capital investment predator", SoftBank clearly smells a huge business opportunity in this industry. They hope to seize the opportunity in this new track and reshape their investment map by investing in chip and artificial intelligence companies on a large scale.
This undoubtedly reflects SoftBank's judgment on the future development of science and technology. They believe that compared with the field of Internet e-commerce, artificial intelligence and the chip industry will become a new engine for future scientific and technological development. Only by transforming in time can they stay ahead of the curve in the new wave of technology.
Therefore, we can believe that SoftBank's "exodus" not only means the completion of Alibaba's "sinicization", but also marks a major "great change" in their own investment strategy. This is not only about SoftBank's own fate, but also affects the future direction of the entire industry.
Prospects: SoftBank for strategic transformation and Alibaba for the new era
Looking ahead, this "divorce" of well-known companies will undoubtedly have a far-reaching impact:
For SoftBank, this transformation is undoubtedly a key "gamble". Whether or not they can re-emerge on a new track is a matter of the fate of the entire company. If it can seize the development opportunities of artificial intelligence and the chip industry, SoftBank may be able to regain its former glory; But if the calculation is miscalculated, the consequences are unimaginable.
For Alibaba, getting rid of the "external control" of SoftBank undoubtedly means that it will have greater autonomy to formulate development strategies according to domestic market demand and policy guidance. This is both a challenge and an opportunity for Alibaba. The key lies in whether it can seize the opportunity of "sinicization" and achieve new breakthroughs.
In general, this pair of "breakup tides" has undoubtedly brought huge shocks to the entire industrial chain. Can SoftBank regain its dominance on a new track?