Co-founder of Alibaba, Jack Ma resigns from SoftBank Group as the only person out of 11 peoples board of directors. He will step down serving as membership director for 13 years. Ma’s resignation will come in effect on June 25, at the SoftBank Group’s annual shareholder meeting this year. SoftBank reported an annual operating loss of $12.5 billion being its worst-ever loss.
Jack Ma resigns as Alibaba’s Chairman also in last September, 20 years after he co-founded it. He wants to shift his life from business to philanthropy works.
SoftBank Group Corp. is a Japanese multinational company working since 1981. It is a Conglomerate Company, headquartered in Tokyo. It runs Vision Fund, being the world’s largest technology-focused capital fund with a capital of $100 billion.
Jack Ma maintains a long business relationship with Softbank Group Chairman and CEO Masayoshi Son. Softbank is the biggest investor of Alibaba’s Group back in the year 2000. It invested an amount of $20million one year after Alibaba’s e-commerce company founded.
The company head is its founder Masayoshi Son and the company generates Revenue of ¥9.60 trillion. It works in the fields of broadband, telecommunications, e-commerce, Semiconductor design, Robotics, AI, and IoT.
Alternatives After Jack Ma Resign
As the alternative to Ma’s resignation the company will nominate three new board directors for election at the shareholders meeting. Their names are SoftBank Group chief financial officer Yoshimitsu Goto, Cadence Design Systems chief executive Lip-Bu Tan, and Waseda Business School professor Yuko Kawamoto. Kawamoto will be the only female member.
Tan and Kawamoto will act as external directors and they will act independently from the board.
Softbank owned a share of 25.1% in Alibaba’s Group according to SEC filing 2020. While its stake in Alibaba is currently more than $100 billion. It is also expected that Softbank will post an annual operating loss report of $12.5 billion.
Reason is the failed investments from its Vision Fund such as WeWork and Uber. The vision and other affiliated funds suffered a loss of $17.7 billion for the fiscal year with different reasons among one of them is COVID-19.
“This is a big crisis for many of us,” Company Founder Masayoshi Son said.
For the purpose of lowering debt and increasing its cash reserves, SoftBank Group said in March that it will sell and monetize $41 billion of its assets and buy back $4.7 billion of its shares.
Now many people want to know what’s the future of Jack Ma would be and what will he do in upcoming days. Let’s See.
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