SoftBank Group Earnings Presentation: WeWork Impacts, 60% Discount, Best Deal In Alibaba

SoftBank Group’s presentation gives a fairly good illustration of what the group is holding, the loss on book due to WeWork and the turnaround plan for it.

The presentation talks a lot about WeWork, but it’s Alibaba that contributes/matters the most right now. Nearly half of ($123 billion out of the $256 billion) its equity values of holding comes from Alibaba.

And given SoftBank Group’s market cap ~$80 billion now, it is a very good source of Alibaba exposure even without hedge (personally I think other holdings are also okay).

The turnaround plan relies a lot on higher occupancy rates and cost cuttings as WeWork manage the properties longer.

Here is the presentation.