Son, the CEO of SoftBank(SFTBF),opened up about some of his recent exchanges with the Alibaba(BABA) co-founder during a earnings presentation Monday, saying the two billionaires kept in touch after Ma was largely out of sight for several months.
Alibaba has long been the crown jewel of SoftBank’s investment portfolio. And Son and Ma are famous in the neighborhood – the Japanese entrepreneur invested $ 20 million in Alibaba more than 20 years ago, turning that bet into one worth $ 60 billion when Alibaba went public in 2014.
But “[we’re] not always [talking] about the company, ”Son said in response to questions about China’s regulatory action against Alibaba and its subsidiary Ant Group. Ma “loves to draw” and “sent me a lot of drawings,” said the Japanese tycoon.
Son added that he usually responds with his own creations, sometimes before going in for the night. “Half an hour or so before going to bed, I draw some drawings … [and] show him. “
Alibaba has been going through a crisis of confidence in recent months as it is monitored by Chinese regulators. The stock fell 25% late last year, although it has recovered some ground in early 2021.
The saga started last fall, as Ant Group prepared for what would have the world’s largest IPO. Ma then accused the authorities of suppressing innovation and condemned the Chinese banks for having a “pawnshop” mentality. Within days, regulators called Ma and Ant’s executives to a meeting and then explained the IPO in full.
Since then, the landscape has deteriorated for Alibaba and other Chinese technology companies, with regulators announcing an antitrust investigation into Alibaba. Ma was silent and canceled a performance at a high-profile event before briefly re-emerging last month, in an online video where he spoke to teachers in China.
Son called Ma a lifelong ‘friend and comrade’ and previously said the two ate every month to catch up on their work and life before the coronavirus pandemic. Until last year, both men were on the boards of each other’s companies.
“[SoftBank] remains Alibaba’s largest shareholder and Alibaba remains our most important asset, ”Son wrote in a company’s annual report last July.
When asked about regulatory risk on Monday, Son dismissed his concerns, arguing that such moderation is healthy.
“Those are necessary regulations, necessary laws,” he told reporters. “I think what they are discussing now is something that has already been done in the US [and] European countries, and that is not better than what we have seen [those] Nations. “
Son also used Alibaba Monday as a case study for his own success, calling it a “golden egg” laid by SoftBank’s “goose”. “I understand a lot of people have been concerned,” he said in reference to Alibaba. “The company itself is actually running smoothly and growing.”
Asked why he thought Ma had chosen to speak out against the Chinese government, Son objected.
“I don’t know the details,” he said. “So I hesitate to make any … comment on that.”
– Laura He and Jill Disis contributed to this report.
