Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SoftBank shares surge on $11 billion DoorDash investment gain

Stock Markets Dec 10, 2020 03:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo

By Chibuike Oguh and Sam Nussey

NEW YORK/TOKYO (Reuters) -SoftBank Group Corp shares surged 11% after the investment conglomerate scored a $11.2 billion gain in the value of its stake in DoorDash Inc following the U.S. food delivery app's blockbuster stock market debut.

SoftBank, which invested $680 million in DoorDash in the last three years, saw the value of its 25% stake in the company rise to $11.9 billion on the first day of trading in New York.

SoftBank's shares climbed as much as 19% in Tokyo trading and closed at new two-decade highs at 8,306 yen.

DoorDash shares ended trading up 87.5% following their debut on Wednesday, valuing the company at $68.4 billion, more than four times its valuation in a private fundraising round six months ago.

SoftBank's DoorDash gains are a boon to Chief Executive Masayoshi Son's efforts to revive its $100 billion Vision Fund, which recorded a string of losses in the past year on soured bets ranging from office space-sharing start-up WeWork to dog-walking startup Wag.

The group's growing market capitalisation, which neared $170 billion on Thursday, raises the costs of management buyout proposals, which have been debated internally but face considerable opposition.

Last month, SoftBank said its Vision Fund was now worth about $76.4 billion, slightly more than the $75 billion paid for its 83 investments, following the rebound in public markets from a coronavirus-induced downturn earlier this year. It has also booked other gains such as $4.5 billion from exited investments.

SoftBank has been investing on a smaller scale with its Vision Fund 2 as it looks to win the trust of backers of the first fund, like Saudi Arabia's sovereign wealth fund, and demonstrate the strength of its investment thesis.

SoftBank's recent wins include a rally in the shares of ride-hailing app Uber Technologies (NYSE:UBER) Inc, where it is a top shareholder, and the sale of chip designer Arm to Nvidia (NASDAQ:NVDA) Corp for $40 billion.

Uber said this week it was selling its struggling self-driving car and air taxi businesses, raising questions over whether SoftBank has backed a likely winner in the shift to autonomous driving.

Vision Fund had invested in DoorDash over four fundraising rounds. It paid $280 million for its first DoorDash stake in March 2018, before buying more shares over two rounds in the following year for about $350 million. The fund made its last DoorDash investment worth about $50 million in June 2020, according to regulatory filings.

SoftBank shares surge on $11 billion DoorDash investment gain
 

Related Articles

Germany stocks lower at close of trade; DAX down 0.31%
Germany stocks lower at close of trade; DAX down 0.31% By Investing.com - Jul 04, 2022

Investing.com – Germany stocks were lower after the close on Monday, as losses in the Retail, Construction and Technology sectors led shares lower. At the close in Frankfurt, the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
John Niemokta
John Niemokta Dec 10, 2020 3:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
DoorDash is not as good as UberEats
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email