Softbank is getting more money pumped in, this time from its yet-to-be-CEO. Nikesh Arora, the just waiting-to-be-CEO of the Japanese telecommunication giant, has declared to make a personal investment of over 60 billion Yen ($480 million or 3000 crore rupees) in his company “as a measure of commitment”.
According to the press release by SoftBank, Arora said,
This is a large transaction for me, and involves taking an enormous risk in my life once again. However, I am extremely confident about the future of the SoftBank group and the long-term objectives that we have set out. I intend to work closely with Son to make the vision a reality.
The latest investment will make him the second largest share holder in the company after founder Masayoshi Son, who had earlier said that he was delighted on Arora’s decision and expected Arora to succeed him one day.
A former Google executive, Nikesh Arora joined SoftBank in July last year and was named President of company this year. He is one of the highest paid executives in the world with SoftBank paying him a staggering sum of $130 million in the fiscal year to March including a one time signing bonus. With market capitalization of about $73 Billion ( according to Business Insider), SoftBank has lately been expanding its overseas expansion with Arora himself at the forefront of things.
It has been particularly focused on making its $20 billion acquisition of the US carrier Sprint Corporation profitable which is struggling at present, largely due to intense competition from rivals like AT&T Inc and Verizon Communications.
SoftBank is also one of the major investors in the Indian startup scene, having invested significant sums in startups like Snapdeal, Ola cabs, Housing.com, and Oyo rooms among others. In June this year, it also declared to invest a sum of $20 billion in India’s solar sector along with Bharti Entreprises and Foxconn.
Arora’s recent investment into SoftBank would certainly put a lot of faith among investors, which was in fact evident from the 0.5 percent gain its shares saw, taking them to 7,477 yen prior to the announcement in Tokyo on Wednesday and 1.4 percent higher in Frankfurt.
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