SoftBank to separate Japan business from overseas operations
The move could help SoftBank protect its profitable Japanese businesses from Sprint, which has weighed down shares of its parent company in recent months.
"It's a reflection of how the company's weight is shifting toward its overseas businesses", said Hitoshi Sato, senior analyst at InfoCom Research.
Also part of this company will be SoftBank's 32% stake holding in Alibaba, 80% stake holding in USA telecom operator Sprint and its investments in Didi Kuaidi, Supercell and Coupang among others.
The move to separate SoftBank's cash-cow domestic mobile business from its overseas investments could ease concerns among some investors that money earned in Japan might be used to support turnaround efforts at unprofitable Sprint, he said. The change will have no effect on how Softbank will report earnings as it remains a single-listed company, meaning that the revamp is largely in-house.
The new structure will see the overseas division of the Japanese group being separated from the domestic business with each side getting its own chief executive.
Japanese telecommunications company SoftBank Group Corp.
The reorganization comes just weeks after SoftBank's announcement of a record $4.4 billion share buyback plan.
Bloomberg last week said Sprint Chairman Masayoshi Son plans to create a subsidiary of SoftBank that will accept some of the carrier's network gear and spectrum as collateral for billions in loans this year.
It will be headed up by Softbank's current president and COO Nikesh Arora. He said they've "already invested around $2 billion over the past year and even if they rescale, it will only go up".