Softbank

Softbank boss breaks silence to condemn murder of journalist Jamal Khashoggi, but says he will not sever ties with Saudi Arabia

  • Japanese conglomerate is closely linked to the Middle Eastern kingdom, which supplies more than half of the money in the company’s US$100 billion Vision Fund
  • CEO said SoftBank was “deeply saddened” by the news of Khashoggi’s murder, which he condemned as “a horrific and deeply regrettable act”
PUBLISHED : Monday, 05 November, 2018, 6:26pm
UPDATED : Monday, 05 November, 2018, 7:05pm

The head of Japanese multinational SoftBank on Monday condemned the killing of Saudi journalist Jamal Khashoggi, but indicated he would continue to do business with Saudi Arabia.

The hotly awaited comments by Masayoshi Son, whose conglomerate has close ties to the kingdom, threatened to overshadow the firm’s results, which saw an eight-fold jump in net profits.

Under Son, SoftBank — originally a software giant — has increasingly become an investment firm, ploughing funds into a broad range of companies and projects outside its core business.

Using the SoftBank Vision Fund, worth an estimated US$100 billion, Son has taken stakes in some of the hottest firms in the tech sector, including Uber, Slack, WeWork and Nvidia.

Nearly half of the money in the fund comes from Saudi Arabia and there has been a pledge of another $45 billion this year.

Son said SoftBank was “deeply saddened” by the news of Khashoggi’s murder, which he condemned as “a horrific and deeply regrettable act”.

As horrible as this event was, we cannot turn our backs on the Saudi people
SoftBank CEO Masayoshi Son

However, he added: “As horrible as this event was, we cannot turn our backs on the Saudi people as we work to help them in their continued efforts to reform and modernise their society.”

Son confirmed that he boycotted a high-profile Saudi investment forum last month along with dozens of global business titans after reports emerged that Khashoggi was killed in the Saudi consulate in Turkey.

He said he had sought explanations from senior Saudi officials over the killing, stressing: “We want to see those responsible held accountable.”

Nevertheless, he said the firm took seriously its “obligation” to help the Saudi people “manage their financial resources and diversify their economy”.

The company’s ties with the Middle Eastern kingdom have been thrown into sharp relief amid the Khashoggi scandal, and SoftBank shares dropped markedly when the news broke.

After a long period of silence, Son wasted no time tackling the subject, addressing the issue at the start of a news conference to present the company’s results.

SoftBank logged an eight-fold jump in net profit in the six months to September — thanks mainly to strong returns from its investment funds.

Net profit rose to 840 billion yen (US$7.4 billion) from 103 billion yen during the same period last year.

The rise was largely driven by gains of 649 billion yen from the SoftBank Vision Fund, which compared with 194 billion yen in the previous period.

Jamal Khashoggi’s body was ‘dissolved’ after murder

Operating profit shot up 62 per cent to 1.42 trillion yen on revenue of 4.65 trillion yen, up 5.5 per cent.

SoftBank has also made high-profile investments in the autonomous vehicles sector, announcing last month a tie-up with car giant Toyota for “new mobility services” such as meal deliveries.

Earlier this year, General Motors said the Japanese firm was investing US$2.25 billion in GM’s autonomous car programme in exchange for a stake in the venture.