SoftBank to sell up to two-thirds of T-Mobile stake, worth about $20 billion

• SoftBank plans to sell up to two-thirds of its stake in T-Mobile early next week, sources told CNBC’s David Faber Tuesday.
• The transaction would represent as much as $20 billion.
• The move is the latest indication of SoftBank’s need for cash.

SoftBank plans to sell up to two-thirds of its stake in T-Mobile early next week, sources told CNBC’s David Faber Tuesday. That would value the transaction at about $20 billion.

The move is the latest indication of SoftBank’s need for cash. The company has seen several of its big swings from its $100 billion Vision Fund under-perform and the coronavirus pandemic has lodged an additional setback for many of its portfolio companies. The Vision Fund posted losses of $18 billion in its May report to investors.

Shares of T-Mobile were down about 1% Tuesday morning following the news.

SoftBank poured $9 billion into WeWork, which failed to go public after its IPO filing was roundly criticized for disclosing the company’s unconventional governance tactics and large losses. At the May earnings presentation, SoftBank Founder and CEO Masayoshi Son said he was “foolish” for the investment as the firm lowered WeWork’s valuation to $2.9 billion as of March 31 based on a discounted cash flow method, down from $7.3 billion as of Dec. 31, following its failed IPO. WeWork Chairman Marcelo Claure said on Twitter following the presentation that he and Son are still “huge believers” in the so-called new WeWork and its management team.

SoftBank said in March it was selling or monetizing up to the equivalent of $41 billion in assets to buyback shares and reduce debt.

It’s still unclear if T-Mobile parent company Deutsche Telekom will purchase shares, Faber reported, but the company is determined to ensure it maintains control over the company. Deutsche Telekom currently holds more than 40% of shares in T-Mobile.