U.S. markets closed
  • S&P Futures

    3,973.50
    +3.25 (+0.08%)
     
  • Dow Futures

    33,873.00
    +2.00 (+0.01%)
     
  • Nasdaq Futures

    11,626.25
    +10.00 (+0.09%)
     
  • Russell 2000 Futures

    1,836.70
    +3.90 (+0.21%)
     
  • Crude Oil

    76.85
    -0.39 (-0.50%)
     
  • Gold

    1,740.00
    -0.30 (-0.02%)
     
  • Silver

    20.94
    +0.02 (+0.12%)
     
  • EUR/USD

    1.0349
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    3.7030
    +0.0120 (+0.33%)
     
  • Vix

    22.21
    +1.71 (+8.34%)
     
  • GBP/USD

    1.1971
    +0.0005 (+0.05%)
     
  • USD/JPY

    139.1290
    +0.2280 (+0.16%)
     
  • BTC-USD

    16,183.17
    -77.41 (-0.48%)
     
  • CMC Crypto 200

    379.44
    -0.85 (-0.22%)
     
  • FTSE 100

    7,474.02
    -12.65 (-0.17%)
     
  • Nikkei 225

    28,026.96
    -135.87 (-0.48%)
     

Softbank Offloads Stake In This Pandemic Favorite As Losses Weigh

  • Softbank Group Corp (OTC: SFTBF) (OTC: SFTBY) has sold its entire stake in Sinch AB (OTC: CLCMF) following a share price collapse of more than 90% in the Swedish cloud-based platform provider.

  • Sinch plummeted 93% from a peak in September 2021 following disappointing earnings reports, Bloomberg reports.

  • The stock is also among the most shorted in Europe.

  • In 2020, Sinch became an investor favorite as pandemic lockdowns fueled demand for its messaging services.

  • Investors also cheered its aggressive pace of acquisitions.

  • The report added that Softbank, which acquired a tenth of Sinch in November 2020, sold its remaining stake of 5% to Sinch's co-founder and interim CEO Johan Hedberg and Neqst D2 AB, a firm connected to the company's Chair Erik Froberg.

  • The stake acquisition by Sinch's largest shareholder and the firm's co-founder could partially offset the potentially harmful aspect of the Softbank sale, Morgan Stanley said.

  • Softbank started laying off employees at its loss-making Vision Fund.

  • Earlier, Softbank founder Masayoshi Son had shared cost-cut intentions at his conglomerate and the Vision Fund investment arm after a record $23-billion loss. Most of the losses came from a plunge in the valuations of portfolio companies, including South Korea's Coupang, Inc (NYSE: CPNG) and DoorDash, Inc (NYSE: DASH).

  • Price Action: SFTBF shares were down 0.76% at $34.54 at the last check Friday.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.