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Meet the man who was once richer than Bill Gates. Then, he lost $70 billion in one go

For about three days, he became the world's richest person, outranking the Microsoft founder
UPDATED AUG 6, 2024
Cover image source: Masayoshi Son | Getty Images | Photo by Tomohiro Ohsumi
Cover image source: Masayoshi Son | Getty Images | Photo by Tomohiro Ohsumi

During the dot-com boom and bust, the Japanese multinational investment holding company, SoftBank, lost 99% of its market capitalization. Along with it, CEO Masayoshi Son, who briefly reigned as the world's richest person at the time, saw his wealth fall by a whopping $70 billion. Son refused to give up. The visionary tycoon has endured a rollercoaster ride, selling the country’s first iPhones and making investments in some of the world’s biggest startups. Last month, the company hit its new lifetime high, after enduring another tough period. 

SoftBank Group Corp. Chairman and CEO Masayoshi Son at a press conference | Getty Images | Photo by Tomohiro Ohsumi
SoftBank Group Corp. Chairman and CEO Masayoshi Son at a press conference | Getty Images | Photo by Tomohiro Ohsumi

Son has been at the helm of SoftBank Group Corp. ever since its inception. While he may not be as globally recognized as some of his billionaire peers, he was once the richest in the world, outranking Microsoft founder, Bill Gates.

At the peak of the dot-com bubble in late 1999 and early 2000, Son’s net worth was leaping up by about $10 billion a week, as per Bloomberg. For about three days, he became the world's richest person as well, but before the news could spread, his company's shares plunged. The shares fell by 75% over two months and by the end of 2000, they were down by 93% with the company at risk of going bankrupt. Along with it, Son saw about $70 billion of his fortune disappear.

Softbank Corp. President and CEO Masayoshi Son, speaks to reporters in Tokyo | Getty Images | Photo by Yamaguchi Haruyoshi
Softbank Corp. President and CEO Masayoshi Son, speaks to reporters in Tokyo | Getty Images | Photo by Yamaguchi Haruyoshi

While reeling from the loss, his company made a strategic decision to invest $20 billion in the little-known Chinese startup, Alibaba. This played a pivotal role in recovering his fortunes, and it led to one of the most successful turnarounds in business history. Over 23 years, SoftBank made a gain of $72 billion from the Alibaba investment, WSJ reported.

Terry Gou, CEO of Foxconn Technology group and Masayoshi Son, CEO of SoftBank Corp and Jack Ma, CEO of the Alibaba Group at a news conference in 2015 | Getty Images | Photo by Koki Nagahama
Terry Gou, CEO of Foxconn Technology group, Masayoshi Son, CEO of SoftBank Corp, and Jack Ma, CEO of the Alibaba Group, at a news conference in 2015 | Getty Images | Photo by Koki Nagahama

Apart from Alibaba, the strategic acquisition of Vodafone Japan, which helped transform Japan’s telecommunications landscape, solidified SoftBank’s position as a major player.

Furthermore, when several Japanese carriers were focusing on Japanese mobile products, Son bet on the new Apple iPhone as he believed it would be a huge success. The risky gamble gave SoftBank a significant leg up on the competition. Over the years, the company made crucial investments in tech disruptors like Uber, Slack, Nvidia, OpenAI, and more.

SoftBank Corp. President and CEO Masayoshi Son poses with the first customer to get an Apple iPhone in Japan | Getty Images | Photo by Kiyoshi Ota
SoftBank Corp. President and CEO Masayoshi Son poses with the first customer to get an Apple iPhone in Japan | Getty Images | Photo by Kiyoshi Ota

In 2017, SoftBank launched the Vision Fund, to focus on next-generation technologies like AI. While Son was driving the company towards another peak, its shares plunged again in 2021, in the wake of Beijing’s crackdown on tech firms and a flurry of failed investments in startups such as WeWork, OneWeb Ltd., Katerra Inc., and Zume Pizza Inc., as per Bloomberg. The fall threatened to tarnish Son's reputation as the company lost billions of dollars.

Yet again, SoftBank’s focus and vision pulled it through and with its close ties with Nvidia and OpenAI, the company strengthened its position in amid the global AI race. 



 

Last month, Bloomberg reported that SoftBank's stock rose to a new lifetime high, marking a vote of confidence in Son’s ambitions to ramp up investments in AI and semiconductors. Today, Son comfortably maintains his billionaire status with a net worth of $14.3 billion, as per the publication.

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