- Softbank Group Corp (OTC:SFTBF) (OTC:SFTBY) has sold its entire stake in Sinch AB (OTC:CLCMF) following a share price collapse of more than 90% in the Swedish cloud-based platform provider.
- Sinch plummeted 93% from a peak in September 2021 following disappointing earnings reports, Bloomberg reports.
- The stock is also among the most shorted in Europe.
- In 2020, Sinch became an investor favorite as pandemic lockdowns fueled demand for its messaging services.
- Investors also cheered its aggressive pace of acquisitions.
- The report added that Softbank, which acquired a tenth of Sinch in November 2020, sold its remaining stake of 5% to Sinch's co-founder and interim CEO Johan Hedberg and Neqst D2 AB, a firm connected to the company's Chair Erik Froberg.
- The stake acquisition by Sinch's largest shareholder and the firm's co-founder could partially offset the potentially harmful aspect of the Softbank sale, Morgan Stanley said.
- Softbank started laying off employees at its loss-making Vision Fund.
- Earlier, Softbank founder Masayoshi Son had shared cost-cut intentions at his conglomerate and the Vision Fund investment arm after a record $23-billion loss. Most of the losses came from a plunge in the valuations of portfolio companies, including South Korea's Coupang, Inc (NYSE:CPNG) and DoorDash, Inc (NYSE:DASH).
- Price Action: SFTBF shares were down 0.76% at $34.54 at the last check Friday.
Softbank Offloads Stake In This Pandemic Favorite As Losses Weigh