RB cross-post authored by S.Ganesh; worth a good look.
By: sganesh $$$
Reply To: 5041 by ghengis2 $$$ Thursday, 13 Jul 2000 at 9:44 PM EDT
Post #5044 of 5046
Softbank valuation post
Hi Guys, I thought I would share my Motley Fool post on Softbank's valuation.
boards.fool.com
>>>I thought it would be appropriate to address the Softbank versus CMGi issue.
From Softbank Finance:
sbfinance.co.jp
17 listed companies in which Softbank directly holds stakes (as opposed to through a VC subsidiary):
Unrealized gain: $24.95 Billion
Softbank's current MCap $35.4 Billion (from Yahoo! Japan finance)
We haven't yet accounted for the 300+ other affiliated companies, public as well as private.
For example, take Concentric Networks, which was swallowed up by NextLink for $2.5Bill. Softbank Ventures held approximately 10% of the company. Now, it's a bit hazy how much of this deal accrues to Softbank Corp (this varies by the deal, from what I've seen, and Softbank doesn't explictly disclose the workings of it's VC operations), but it's something to add to the pie.
Similar case for 50+ other public companies. Some prominent ones: Art Technology Group, eVentures NZ, Inktomi, Exodus, Multex, Verisign, Getty Images, Critical Path, Interliant, Backweb, Net2Phone, MarchFirst, Macromedia. Most of these are multi-Billion$ companies.
Add in the private firms .
Then add in the funds they've pumped into numerous ventures recently like Softbank Latin Ventures (with the World Bank), Softbank UK Ventures (with News Corp), Softbank Europe Ventures (Vivendi), NCB, etc, these add up to approximately $3 Billion in hard cash.
Small drops of water make a large ocean.
We also have to realize that Softbank is profitable. The core business is still making money. Most of the losses we've shown recently have been non-cash losses (handily offset by stock sales, for which we paid no capital gains tax).
Now let's take CMGi. From this post:
boards.fool.com
CMGi has 1.6 Bill in marketable securities, and it's MCap is around $12 Billion. The core business is still burning money at the rate of $67 million/month.
SGanesh@2+2=3?.com
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