Why prudent investors are chary of SoftBank
SummaryThe successful IPO of Arm Holdings has boosted SoftBank’s war chest, but canny investors remain cautious about the companies it backs
When UK-based semiconductor and software design firm Arm Holdings filed for an initial public offer (IPO) last month, it was seen as crucial for SoftBank Group, its owner and the biggest name in tech investing. The IPO was a success, but SoftBank’s misadventures with past investments linger. Following the IPO, valuation guru Aswath Damodaran told CNBC that SoftBank’s holding in Arm was a red flag – that he would want to avoid whatever SoftBank tells him to buy, and that it didn’t “have a soft touch when it comes to building businesses".