After upping its share-selling plans of Alibaba to $10 billion, Sprint Corp. parent SoftBank Group Corp. has announced its plans to offload its shares of GungHo Online Entertainment Inc. to improve its balance sheet.
SoftBank’s series of asset sales comes as part of a broader effort to reexamine its technology portfolio, reduce its massive debt load and gain flexibility for future investments. After years of acquisitions, the Japanese company has acquired nearly $108 billion in debt, the cause of its share divestitures.
SoftBank plans to raise $10 billion from selling down its stake in China’s Alibaba Group Holding Ltd. and another $685 million from offloading shares in GungHo Online Entertainment Inc. It’s also in discussions to exit Finnish game developer Supercell Oy, according to people familiar with the matter, a deal that could increase the amount raised via asset sales to $14 billion.
The Japanese telecommunications company paid about $20 billion for a controlling stake in Sprint, which is currently facing $34 billion in debt itself.