Softbank seems to, by all report, embarking on a strategy to "corner" the valuable internet properties, business models, and approaches to Japan, then Taiwan, Hong Kong, Singapore and China. They do so by forming 50%+ joint ventures with local entities in all countries mentioned on some sort of a rollout plan (Yahoo!, E-Trade and other portfolio companies) to introduce the same concepts that appears to work in the US to Asia. A McDonald's approach, except with equity ownership. As the interest rate was and is low (next to zero) in Japan where 9984 got its start, immediate profit/cash flow of these joint ventures and investment acquisitions are not real back breakers.
9984 also lists tracking stocks(Ziff Davis, etc) and had listed Yahoo! Japan (900 shares, selling at over Yen 2 million a piece). So, bottom line, Softbank is an investment holding company.
By the time US based internet outfits are ready for Asia (when they are no longer threatened by their other US competitors - a long time from now), 9984 will have Asia wrapped up.
If the Japanese can bid up Tokyo land to equal to whole of east and west coast UA, imagine what they will be able to do with the only pure play internet outfit on the Tokyo board?
Softbank, Sony, E-trade is in one deal to do on-line trading for Japan. Softbank is leveraging its Japanese and US connections. So, we now have Softbank+Sony+E-trade, Softbank+Yahoo+Microsoft, what about later? Softbank+Sony+Broadcast.com? Softbank+Microsoft+Yahoo? Softbank+Microsoft+Sony+Broadcast.com? The mind boggles. This beats CMIG, with 0.125% Tokyo bank financing.
Much of Softbank's management input and advisors are American, the Chairman (Son) is a Japanese Korean but very Americanized.
My retirement depends on Bill Gate, Mr. Son, and Zhu Rong Ji (Chinese premier).
Warning (which is also an opportunity) as earlier message, 9984 is volatile on the downside when US Internet shares wobble. |
