Masayoshi Son has announced his stepping down as the CEO of SoftBank Group Corp. after nearly two decades of leadership. Son is credited for transforming SoftBank from a start-up focused on supplying ISPs with infrastructure services into one of the world’s largest high-tech groups.
SoftBank will now be led by current President and CEO, Ken Miyauchi, who has been very involved in the planning and execution of its business strategy in recent years. According to Son, this move aims to ensure the company can move forward with a renewed focus on innovation and long-term growth. This news coincides with reports that SoftBank is also considering restructuring its holdings around new divisions such as venture capital, mobile content and media investments.
It is expected that despite his departure as CEO, Masayoshi Son will still be involved in SoftBank’s executive decisions through his role as chairman of the board. However, it remains to be seen how this will translate into his role within the company moving forward. Still, experts hint that he could play an increasingly larger role in strategic decision making for new investments or ideas.
Background
On March 10th, SoftBank Group, a Japanese multinational conglomerate announced a major management transition. Masayoshi Son, who served as the CEO and Chairman of SoftBank Group announced that he is stepping down from his executive role within the company and will be replaced by current president and chief operating officer, Marcelo Claure.
Let’s take a look at the background of this notable announcement.
Overview of SoftBank Group
SoftBank Group Corp., formerly known as SoftBank Group Corp., is a Japanese multinational holding corporation headquartered in Tokyo, Japan. The company, which provides information technology services and products, was founded in 1981 by the late Masayoshi Son. As of March 2020, SoftBank Group had over 80000 employees and reported over USD 15 billion revenues. It consists of the following four operating companies:
-SoftBank Corp.: This company sells mobile phones and other related services such as payment contracts and residential internet services.
-Yahoo! Japan Corporation: Although Yahoo! has discontinued its global operations, it still runs Yahoo! Japan in a joint venture with Softbank Group. This unit offers internet services such as search engines, email, news sites etc.
-SoftBank Investment Corporation (SBIC): SBIC supports venture capital investments for companies located primarily in Japan and the US through direct investments intended to stimulate regional economies across different countries and funds targeting specific industries (eg: AI & robotics).
-Sprint Communications Inc.: Sprint Communications provides cellular telephone services in the United States through its Sprint Nextel mobile phone system. In addition, it provides broadband access to mobile phones nationwide via its 4G LTE network and nationwide Voice over IP services via its CDMA2000 1X network.
The group also has several subsidiaries dedicated to venture capital investments including SB Capital Investments & Partners Inc., SBI FinTech Innovation Fund Inc., SBI R&D Promotion Corporation etc., with an emphasis on accelerating technology advancements driven by innovative startups from around the world from various industries such as clean energy, artificial intelligence to robots devices etc. The company is currently headed by Masayoshi Son’s son Ken Miyauchi who succeeded him as CEO in June 2020 after 30 years at the helm.
Masayoshi Son’s Career
Masayoshi Son is a Japanese businessman, investor, and philanthropist who founded and is the current chairman of SoftBank Group Corporation. A renowned and highly successful entrepreneur, Son has become one of the most prominent figures in global business due to his leadership of SoftBank.
Son began his career as a translator for Aramco, the Saudi Arabian oil company. In 1981 he co-founded software company Japan Softbank and grew it into one of Japan’s largest software companies by 1986. During this time he also established a computer rental service which eventually led to the launch of Yahoo! Japan in 1996.
In 2001 Son’s track record was enhanced further when he acquired Vodafone Group Plc’s Japanese mobile unit for $15 billion, making him an even bigger name in Japan’s business community. In 2006 SoftBank opened subsidiary Softbank Telecom Corporation and acquired major holdings in Yahoo!, eAccess Ltd., Alibaba Group Holding Limited, Sprint Corporation, ARM Holdings plc, Fortress Investment Group LLC and Uber Technologies Inc.. Son was named CEO of SoftBank in March 2006 before retiring in June 2020 with Ken Miyauchi taking over executive leadership .
SoftBank Group Announces Management Transition
SoftBank Group recently announced a management transition, with Masayoshi Son stepping down as the CEO of SoftBank Group. This news has sent ripples throughout the market and has created a lot of speculation on how this will affect the company in the long-term.
It is important to understand the details of the transition and what this means for SoftBank Group’s future.
New CEO Appointment
On July 16th, 2020, telecommunications and technology giant SoftBank Group announced the appointment of President Nikesh Arora as the company’s Chief Executive Officer. The move comes just a few months after its founder Masayoshi Son stepped down as CEO.
The move represents a largest evolving leadership change for the company, which Masayoshi Son founded in 1981. During his tenure as CEO, Mr. Son made many successful investments and acquisitions that turned SoftBank into one of Japan’s most powerful conglomerates. He remained at the company’s helm until February 2020 when he resigned to prioritise strategic decisions and focus on long-term initiatives such as digitalization and health care.
Nikesh Arora is best known for roles at Google, Inc., where he was chief business officer until 2013. Before becoming president of SoftBank Group in June 2015, he served as its chief operating officer for almost a year after several months overseeing strategic investments into native Japanese firms and international startups from Asia to North America.
The new CEO is expected to build on Masayoshi Son’s legacy while taking forward-thinking approaches to drive continued growth and success. Softbank is set up for success with Mr Arora’s ambitious plans for the company’s future endeavours already gaining attention.
Masayoshi Son’s New Role
Masayoshi Son, the founder and former CEO of SoftBank Group, announced his transition from the chief executive position to chairman of the board effective March 2021. Yoshimoto San has steered SoftBank in its impressive and consistent performance since founding it in 1981. In his new role as Chairman of the Board, Son will be tasked with evolving strategic initiatives such as establishing a governance system and overseeing investments overseas. He will also apply his investigative expertise to create long-lasting value for customers and other stakeholders including investors, employees, vendors and partners.
The Board appointed Ken Miyauchi as Chief Executive Officer effective March 2021. Dr. Miyauchi has been a driving force for enabling SoftBank’s success since joining in 2007. As part of his comprehensive role before CEO appointment, he has held various senior leadership positions including President & Chief Operating Officer from April 2016 through December 2020 where he led group operations responsible for all domain business entities. Later he was named President & Chief Operating Officer in May 2017 leading sales operations worldwide from January 2018 through December 2020 where he was responsible for sales transformation at global scale as well as grew partnerships across key countries with mobile operators worldwide along with more strategic partnerships around different businesses segment globally within Telecoms market.
Reaction to the Announcement
This morning, news broke that SoftBank Group had announced a management transition, with Masayoshi Son stepping down as CEO. The announcement sent shockwaves across the business community, sparking much debate and speculation over what this might mean for the company.
In this article, we’ll look at the reaction to the announcement, from industry voices, shareholders, and Masayoshi Son himself.
Analysts’ Opinions
The announcement that Masayoshi Son is stepping down as CEO of SoftBank Group has received mixed reactions from analysts. While some look forward to the potential changes a new CEO might bring, others are more cautious and concerned about the implications.
Analysts have highlighted the need for more clarity on the role of the incoming Chief Operating Officer (COO) Marcelo Claure and how it will differ from Masayoshi Son’s previously held position. Reports on his appointment have also resulted in speculation over whether foreign ownership restrictions in Japan might be relaxed under his tutelage. This could open doors to global partnerships with other companies, adding diversity to Softbank’s investment portfolio and strategy.
At the same time, many analysts have remarked on the importance of retaining Masayoshi’s spirit and vision at Softbank during this transition period. That being said, some are also wary of the potential negative impact that further financial losses or weaker-than-expected performance may have on investors’ confidence going forward.
Shareholder’s Response
Yesterday, the news of Masayoshi Son stepping down from his position as the Chief Executive Officer of SoftBank Group Corporation (SoftBank) was met with mixed reactions from shareholders.
Some expressed confidence in the company’s future direction under new leadership, citing Son’s legacy and long history with SoftBank and their belief in the strength of his succession plan. However, others expressed concern about the impact a change in leadership may have on SoftBank’s financial performance and strategic direction.
In response to these reactions, SoftBank reinforced its commitment to delivering long-term value for shareholders, maintaining strong operational performance across its subsidiaries and pursuing key investments over the coming years. The company thanked Son for his leadership and dedication to driving growth within SoftBank. It acknowledged that the group’s success will be influenced by the spirit of unity between its Chairman, CEO, Board and senior management team.