<ul class="summary-list"><li>Japanese investment giant <keyword id="163404" type="COMPANY" weightage="60" keywordseo="Softbank">SoftBank</keyword> is under investigation by the SEC, <a href="https://www.vice.com/en/article/epdymj/the-sec-is-investigating-major-tech-investor-softbank?utm_content=1616620717&amp;utm_medium=social&amp;utm_source=motherboard_twitter_twitter">Vice News</a> reported Wednesday.</li><li>The SEC disclosed its probe in response to a FOIA request, according to legal group <a href="https://twitter.com/PlainSite/status/1374725471263334402">PlainSite</a>.</li><li><a href="https://markets.businessinsider.com/news/stocks/softbank-ceo-masayoshi-son-billions-loss-tech-stocks-elliott-management-2020-11-1029798158?r=ts-sub">SoftBank made risky multibillion-dollar bets</a> last year hoping to boost the value of its investments.</li></ul>The Japanese investing conglomerate SoftBank, which has holdings in household names like <keyword id="6354427" type="ORGANIZATION" weightage="60" keywordseo="apple">Apple</keyword>, Amazon, <keyword id="107096" type="COMPANY" weightage="60" keywordseo="Tesla">Tesla</keyword>, <keyword id="1042120" type="PERSON" weightage="60" keywordseo="Uber">Uber</keyword>, DoorDash, and Sprint, is under investigation by the Securities and Exchange Commission, <a href="https://www.vice.com/en/article/epdymj/the-sec-is-investigating-major-tech-investor-softbank?utm_content=1616620717&amp;utm_medium=social&amp;utm_source=motherboard_twitter_twitter">Vice News</a> reported Wednesday.The SEC disclosed the investigation in response to a public records request from Think Computer Foundation founder Aaron Greenspan, according to the legal transparency group <a href="https://twitter.com/PlainSite/status/1374725471263334402">PlainSite</a>.The agency's reported acknowledgment of its investigation follows reporting by the Financial Times last year that revealed <keyword id="10266731" type="UNKNOWN" weightage="60" keywordseo="sb-northstar">SB Northstar</keyword>, which is controlled by SoftBank CEO <keyword id="357983" type="PERSON" weightage="60" keywordseo="Masayoshi-Son">Masayoshi Son</keyword>, as the "<a href="https://markets.businessinsider.com/news/stocks/softbank-unwind-nasdaq-whale-options-trades-billions-losses-investor-backlash-2020-12-1029858515">Nasdaq whale</a>" behind secretive, risky multibillion-dollar bets on tech stocks during last summer's market rally.Greenspan had asked for "any investigative materials" about SoftBank or its web of companies "specifically relating to SoftBank's trading of stocks and derivatives on those stocks," according to PlainSite. After initially denying that it had any relevant records, the SEC responded to Greenspan's appeal by saying it had records, but couldn't share them, because "the investigation from which you seek records is active and ongoing."In a statement to Insider, SoftBank said it "takes its obligations with respect to all regulatory matters very seriously," but said, "we are not aware of any SEC investigation into the company's securities trading and have not been notified by them to date."The SEC did not immediately respond to requests for comment on this story.SoftBank faced <a href="https://markets.businessinsider.com/news/stocks/softbank-unwind-nasdaq-whale-options-trades-billions-losses-investor-backlash-2020-12-1029858515">intense pressure from its major shareholders</a> to unwind its risky options positions after SB Northstar posted $3.7 billion in losses in November, which included $2.7 billion in derivatives losses, the Financial Times <a href="https://www.ft.com/content/0edb7c17-58e6-4ded-acfa-1822440a926c">reported in November</a>. SoftBank eventually relented to that pressure.

SoftBank is reportedly under investigation by the SEC following its risky 'Nasdaq whale' investments

<ul><li><a href="https://markets.businessinsider.com/stocks/softbank-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">SoftBank's</a> trading arm <keyword id="10266731" type="UNKNOWN" weightage="60" keywordseo="sb-northstar">SB Northstar</keyword> will relinquish its risky <keyword id="43774" type="PERSON" weightage="60" keywordseo="Options">options</keyword> positions after backlash from investors and employees, the <a href="https://www.ft.com/content/5982b289-fdbe-499d-9421-e0982e2a716f">Financial Times</a> reported Wednesday. </li><li>The tech-stock derivatives trades have already fueled $2.7 billion in losses. SB Northstar will allow its remaining contracts to expire, according to the report.</li><li>The trading arm was revealed in September to be the "Nasdaq whale" making multibillion-dollar bets on <keyword id="552967" type="PERSON" weightage="60" keywordseo="tech-stocks">tech stocks</keyword> through the summer.</li><li>Employees, investors, and activist hedge fund Elliott Management have all balked at the high-risk strategy employed by SB Northstar. <keyword id="163404" type="COMPANY" weightage="60" keywordseo="Softbank">SoftBank</keyword> workers "should not be day traders," one employee told the FT.</li><li><a href="https://www.businessinsider.com/?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestutm_source=msn.com&amp;utm_medium=referral&amp;utm_content=msn-slideshow&amp;utm_campaign=bodyurl?utm_source=markets&amp;utm_medium=ingestts&amp;utm_medium=ingest">Visit the Business Insider homepage for more stories</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/softbank-stock?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">SoftBank's</a> tech-focused trading arm will let go of its risky options bets after widespread backlash and losses totaling $2.7 billion, the <a href="https://www.ft.com/content/5982b289-fdbe-499d-9421-e0982e2a716f">Financial Times</a> reported on Wednesday.SB Northstar, the unit led by SoftBank CEO Masayoshi Son that bet on tech stocks' daily moves, will let its options contracts expire, sources told the FT. SoftBank will continue to invest in tech mega-caps, but through long-term equity stakes over highly volatile derivatives trades.The reversal comes just months after SB Northstar was first revealed by the FT to be the "Nasdaq whale" trading billions of dollars' worth of tech options. The trading arm <a href="https://markets.businessinsider.com/news/stocks/softbank-ceo-masayoshi-son-billions-loss-tech-stocks-elliott-management-2020-11-1029798158">posted $3.7 billion in losses</a> in mid-November, with the bulk of the shortfall linked to options positions.Read more: <a href="https://www.businessinsider.com/stock-picks-18-companies-factor-etfs-blackrock-overweight-momentum-size-2020-12">BlackRock is channeling more cash to high-momentum and relatively small stocks as the economy recovers. These are the 20 companies they're earmarking the most money for.</a>SoftBank faced pressure from several parties to abandon the derivatives stakes. Activist hedge fund Elliott Management, which is likely the second-largest owner of SoftBank shares, expressed concern around SB Northstar's trades, <a href="https://www.wsj.com/articles/masayoshi-son-softbank-elliott-management-11605069825">The Wall Street Journal</a> reported in November. Some Elliott executives even hedged against SoftBank's bullish positions with their own put options on tech stocks.In recent calls with SoftBank, Elliott reportedly cautioned SoftBank against making another risky tech-stock bet, and instead urged the firm to stay disciplined in its investing. The hedge fund helped SoftBank recover from a spring plunge by advising the firm to buy back shares and improve governance, according to The Journal.Investors reportedly questioned why SoftBank was dabbling in day trading, as Son has repeatedly emphasized the firm's focus on long-term tech investments.Those inside SoftBank have also expressed doubts that the strategy should continue. One told the FT that the firm's workers "should not be day traders," and others pondered whether SB Northstar should be borrowing cash from SoftBank's coffers for some of its trades.SoftBank told the FT that Son will guarantee any remaining debts linked to his 33% ownership of SB Northstar by the time the arm closes in 2034.Now read more <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> coverage from Markets Insider and Business Insider:<a href="https://markets.businessinsider.com/news/stocks/salesforce-q3-earnings-stock-price-slack-deal-weak-growth-guidance-2020-12-1029858085">Salesforce falls 11% after confirming $27.7 billion Slack acquisition and forecasting slower growth</a><a href="https://www.businessinsider.com/us-private-payroll-november-adp-jobs-economic-data-unemployment-recovery-2020-12">US companies added 307,000 jobs in November, fewer than economist forecasts, ADP says</a><a href="https://www.businessinsider.com/options-trading-how-investors-can-protect-tech-heavy-portfolios-nasdaq-2020-12">The creator of a new volatility index for the Nasdaq 100 shares how investors can protect portfolios loaded with tech names — and explains why he thinks it's superior to the VIX</a>

SoftBank will unwind the 'Nasdaq whale' options trades that cost the firm nearly $3 billion, report says

<ul><li><a href="https://markets.businessinsider.com/stocks/softbank-stock">SoftBank's</a> new trading arm, <keyword id="10266731" type="UNKNOWN" weightage="60" keywordseo="sb-northstar">SB Northstar</keyword>, led by CEO <keyword id="357983" type="PERSON" weightage="60" keywordseo="Masayoshi-Son">Masayoshi Son</keyword>, posted $3.7 billion in losses as bearish derivatives bets on <keyword id="552967" type="PERSON" weightage="60" keywordseo="tech-stocks">tech stocks</keyword> floundered, <a href="https://www.ft.com/content/0edb7c17-58e6-4ded-acfa-1822440a926c" target="_blank" rel="noopener">the Financial Times reported on Wednesday</a>.</li><li>The arm was mostly kept secret until the Financial Times reported in September that it was making multibillion-dollar bets on tech giants through the summer's market rally.</li><li>The move into risky day trading has raised concerns at <keyword id="912157" type="ORGANIZATION" weightage="60" keywordseo="Elliott-Management">Elliott Management</keyword>, a hedge fund thought to be <keyword id="163404" type="COMPANY" weightage="60" keywordseo="Softbank">SoftBank</keyword>'s second-biggest shareholder.</li><li>Elliott helped guide SoftBank's rebound from spring losses by urging asset sales and share buybacks. But Son's focus on day trading is butting heads with Elliott's more conservative investing style, <a href="https://www.wsj.com/articles/masayoshi-son-softbank-elliott-management-11605069825" target="_blank" rel="noopener">The Wall Street Journal reported</a>.</li><li><a href="https://www.businessinsider.com/?utm_source=markets&amp;utm_medium=ingest?utm_source=markets&amp;utm_medium=ingestutm_source=msn.com&amp;utm_medium=referral&amp;utm_content=msn-slideshow&amp;utm_campaign=bodyurl?utm_source=markets&amp;utm_medium=ingestts&amp;utm_medium=ingest">Visit Business Insider's homepage for more stories</a>.</li></ul><a href="https://markets.businessinsider.com/stocks/softbank-stock">SoftBank's</a> new tech-focused trading unit is already down $3.7 billion. The company's second-largest shareholder is now stepping in to offset the losses.SB Northstar, the unit led by SoftBank CEO Masayoshi Son that trades the daily moves of tech stocks, revealed its losses for the first time on Wednesday, <a href="https://www.ft.com/content/0edb7c17-58e6-4ded-acfa-1822440a926c" target="_blank" rel="noopener">the Financial Times reported</a>. The arm was kept in the shadows until September, when the Financial Times reported that it was <a href="https://www.ft.com/content/75587aa6-1f1f-4e9d-b334-3ff866753fa2">the "Nasdaq whale"</a> trading billions of dollars' worth of <keyword id="43774" type="PERSON" weightage="60" keywordseo="Options">options</keyword> contracts on tech stocks through the summer.While a former Deutsche Bank trader heads the unit now, Northstar's trades are approved by a three-person panel that includes Son and Ron Fisher, SoftBank's vice chairman.The trading arm had bought nearly $17 billion worth of shares in tech giants and another $3.4 billion in stock derivatives by the end of September, according to the Financial Times. While some of Northstar's more bullish positions gained as tech stocks rallied through the summer, short bets fueled the bulk of the quarter's multibillion-dollar loss.Read more: <a href="https://www.businessinsider.com/stock-market-investing-cheap-value-ideas-morningstar-dave-sekera-2020-11" target="_blank" rel="noopener">Morningstar's chief US market strategist breaks down why the rotation into value stocks is bound to continue — and pinpoints 4 of the cheapest areas of the market with the most upside</a>Son's focus on day trading marks a shift in his investing style. Though the SoftBank founder is known for riskier investments — including a stake in WeWork, the floundering shared-workspace startup — his successes have hinged on long-term gains and profiting on secular growth trends. Whereas SoftBank's famous $100 billion Vision Fund invests in private tech companies, Northstar actively trades shares of public firms.The riskier investing style and Northstar losses sparked concern at the hedge fund Elliott Management, <a href="https://www.wsj.com/articles/masayoshi-son-softbank-elliott-management-11605069825">The Wall Street Journal reported on Wednesday</a>. The activist fund has slowly built up a stake in SoftBank that likely makes it the company's second-biggest shareholder.When SoftBank shares nose-dived in the spring, Son and other executives at the company reached out to Elliott for counsel. The hedge fund's executives advised SoftBank to buy back shares and improve governance, The Journal reported. SoftBank exceeded Elliott's buyback target and sold more than $92 billion in assets to build a healthy cash buffer.Read more: <a href="https://www.businessinsider.com/investing-strategy-stock-market-2021-outlook-covid-vaccine-goldman-2020-11" target="_blank" rel="noopener">Goldman Sachs says investors should make these 3 trades now ahead of an anticipated 20% stock-market rally over the next year</a>But some at the hedge fund fear that Son's move into day trading could plunge SoftBank into another risky position, according to The Journal. A few Elliott executives are so concerned that they've even hedged against Northstar's positions with put options on tech stocks. If Northstar's bullish tech bets fail, Elliott's bearish positions would counter the losses.In recent calls with SoftBank, Elliott has emphasized the need to stay disciplined instead of pursuing another multimillion-dollar tech bet, according to The Journal. The hedge fund already helped SoftBank recover from its spring plunge, but the two still have investing styles that butt heads. Whether SoftBank follows Elliott's more cautious approach or returns to its make-or-break investing style remains to be seen.Now read more <keyword id="31671" type="CITY" weightage="100" keywordseo="markets">markets</keyword> coverage from Markets Insider and Business Insider:<a href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-coronavirus-cases-soar-vaccine-expectations-dow-nasdaq-2020-11-1029797227">US stocks waver as virus resurgence catches up with vaccine optimism</a><a href="https://www.businessinsider.com/us-weekly-jobless-claims-709000-unemployment-insurance-filings-economic-recovery-2020-11">US weekly jobless claims fall to 709,000, lower than economist forecasts as labor-market recovery accelerates</a><a href="https://www.businessinsider.com/options-trader-turned-ceo-shares-strategies-to-take-advantage-of-2020-11">The CEO of a $3.5 billion investing firm recounts how he went from working in GM's treasurer's office to hedging for high-net-worth investors on Wall Street — and shares 2 options strategies that investors can take advantage of now</a>

SoftBank CEO Masayoshi Son racked up a $3.7 billion loss trading daily moves in tech stocks — and the risky investments are concerning the company's 2nd-biggest shareholder

<a href="https://markets.businessinsider.com/stocks/pacb-stock"></a><ul class="summary-list"><li>Pacific Biosciences stock skyrocketed on Wednesday amid a reported $900 million investment from SoftBank.</li><li>SoftBank's SB NorthStar unit will buy $900 million of notes with an initial conversion price of $43.50 per share.</li><li>The SB NorthStar unit reported losses of $1.6 billion in SoftBank's most recent earnings release. </li></ul><a href="https://markets.businessinsider.com/stocks/pacb-stock">Pacific Biosciences</a> spiked as much as 29% on Wednesday before paring gains after <a href="https://investor.pacificbiosciences.com/news-releases/news-release-details/pacific-biosciences-announces-900-million-investment-softbank">the company revealed</a> that <a href="https://markets.businessinsider.com/stocks/sftby-stock">Softbank</a> plans to invest $900 million into its business.The $900 million investment, which will be in the form of convertible debt, will come from the recently established asset-management arm of SoftBank, SB NorthStar. The investment adds to the unit's roughly 6% current stake Pacific Biosciences.The Menlo Park, California-based company is a genomics systems developer that focuses on providing state-of-the-art DNA-sequencing equipment to scientists."This strategic investment by SoftBank validates our leadership position in the long-read DNA sequencing market and enables us to further accelerate our growth strategies", said Christian Henry, President and Chief Executive Officer of Pacific Biosciences.Read more: <a href="https://www.businessinsider.com/sports-betting-outlook-betmgm-mgm-entain-investing-tips-strategy-draftkings-2021-2?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener noreferrer">The CEO of the sports-betting app BetMGM breaks down his outlook for the industry - and shares 3 pieces of advice for investors targeting the sector</a>.SB NorthStar came under scrutiny for <a href="https://www.businessinsider.com/softbanks-northstar-unit-reports-about-37-billion-in-losses-2020-11">producing $3.7 billion in trading losses</a> using risky options strategies in late 2020. Though the unit recovered in SoftBank's <a href="https://group.softbank/en/ir">most recent earnings release</a>, it reported $1.6 billion in losses.The group recently made some winning investments to help right the ship however, including a $215 million bet on a Norwegian online-educational game platform called Kahoot and a $690 million stake in the Swedish cloud communications company Sinch.Pacific Biosciences has had a remarkable run since July, with shares up 1,167%. The company has benefitted from new management and a joint venture with Invitae Corp., a medical-genetics company, to develop epilepsy tests.A 15-year, <a href="https://www.businesswire.com/news/home/20200113005753/en/Illumina-Announces-New-Sequencing-System-Partnership-Roche">non-exclusive deal</a> with <a href="https://markets.businessinsider.com/stocks/rhhvf-stock">Roche</a> to help increase the availability of next-generation sequencing-based in vitro diagnostic (IVD) tests has also added to the growth story.PacBio had planned a $1.2 billion merger with larger competitor <a href="https://markets.businessinsider.com/stocks/ilmn-stock">Illumina</a> about a year ago, but the deal fell through after anti-monopoly regulatory agencies in the United States and the UK began asking questions.PacBio received a $98 million "reverse termination fee" when the deal failed to go through, but now the company will be forced to return $52 million of that sum because the SoftBank deal is considered a "change of control" transaction.Read More: <a href="https://www.businessinsider.com/stocks-to-buy-16-high-conviction-picks-outperform-credit-suisse-2021-2?utm_source=markets&amp;utm_medium=ingestgest" target="_blank" rel="noopener">Credit Suisse says to buy these 16 'highest-conviction' stock picks that are set to outperform despite the market's contrarian view</a>."We believe that PacBio's [technology] will be the de facto standard tool for population genomics, fundamentally altering the practice of health care," said Akshay Naheta, CEO of SB Management, which runs the Northstar portfolio.Pacific Biosciences CEO, Christian Henry, said the investment will also enable the company to lower prices for its systems, <a href="https://www.wsj.com/articles/softbank-to-make-900-million-investment-in-pacific-biosciences-11612921031">per the Wall Street Journal</a>.Shares of Pacific Biosciences traded up nearly 17%, at $46.25 per share as of 10:49 AM EST on Wednesday.

Pacific Biosciences spikes 29% after announcing a $900 million investment from SoftBank

Good morning! This is the tech news you need to know this Thursday. <a href="http://newsletter.businessinsider.com/join/4np/10-things-in-tech&amp;hash=8122c716833601fc1471f79af063b104?nr_email_referer=1&amp;utm_source=Sailthru&amp;utm_medium=email&amp;utm_content=10_things_tech&amp;utm_campaign=Post%20Blast%20sai:%2010%20things%20in%20tech%20you%20need%20to%20know%20today&amp;utm_term=10%20THINGS%20IN%20TECH%20YOU%20NEED%20TO%20KNOW%20-%20ENGAGED%2C%20ACTIVE%2C%20PASSIVE%2C%20DISENGAGED0PASSIVE%2C%20DISENGAGED">Sign up here</a> to get this email in your inbox every morning.Have an Amazon Alexa device? Listen to this update by searching "Business Insider" in your flash briefing settings.And for the biggest stories in politics, <a href="http://newsletter.businessinsider.com/join/10-things-in-politics" target="_blank" rel="noopener">sign up here for 10 Things in Politics You Need to Know Today</a> — launching soon!<ol><li>Facebook and Google extended a ban on political ads. In <a href="https://www.businessinsider.com/facebook-political-advertising-ban-extended-memo-trump-spreads-election-misinformation-2020-11?r=US&amp;IR=TIR=T">a memo to political-ad buyers</a> obtained by Business Insider, Facebook said the ban could last another month "to help prevent confusion or abuse on our platform" regarding the presidential election. </li><li>President-elect Joe Biden has turned to Big Tech for staffers. His <a href="https://www.businessinsider.com/biden-transition-team-big-tech-execs-facebook-google-apple-twitter-2020-11?r=US&amp;IR=TIR=T">transition team features</a> many senior people from the tech industry, including executives from Amazon, Uber, and Airbnb but there are no names from Facebook, Google, Apple, or Twitter on the list. </li><li>SoftBank has unveiled a new tech stock trading unit. SB Northstar <a href="https://www.ft.com/content/0edb7c17-58e6-4ded-acfa-1822440a926c">invests in publicly listed stocks</a> and has racked up $3.7 billion in losses so far, according to the FT. </li><li>Conservatives are hot for Parler. The social-media app is<a href="https://www.businessinsider.com/what-is-parler-app-social-media-twitter?r=US&amp;IR=TIR=T">touted by Republican politicians</a> and right-wing pundits, and made it to the top of the App Store in the days following the 2020 election. </li><li>The UK will block takeovers that pose a national security risk. Proposed new legislation would <a href="https://www.businessinsider.com/uk-foreign-buyers-up-ai-and-quantum-firms-2020-11?r=US&amp;IR=TIR=T">require foreign buyers in 17 key industries</a>, including AI, quantum computing, and autonomous robots, to check in with a newly-formed government department. </li><li>Alibaba's Singles Day surpassed $74 billion. The major shopping holiday <a href="https://www.businessinsider.com/alibaba-singles-day-sales-surpassed-74-billion-2020-11?r=US&amp;IR=TIR=T">is usually bigger</a> than Black Friday and Cyber Monday combined. </li><li>Some Ring doorbells caught fire. Around 350,000 second-generation Ring doorbells sold in the US, and roughly 8,700 sold in Canada, <a href="https://www.businessinsider.com/ring-recalls-350000-doorbells-after-some-of-them-caught-fire-2020-11?r=US&amp;IR=TIR=T">have a potential fire hazard</a> linked to their batteries, the US Consumer Product Safety Commission said Tuesday. </li><li>Hopin is the major success of the pandemic. The UK startup is only 8 months old, but has <a href="https://www.businessinsider.com/hopin-pandemic-jumpstarts-events-startup-to-rapid-unicorn-status-2020-11?r=US&amp;IR=TIR=T">raised at a $2.1 billion valuation</a> to run conferences and events online. </li><li>Cloud service Fastly is caught up in TikTok geopolitics. ByteDance, TikTok's China-based parent company, is<a href="https://www.businessinsider.com/fastly-ceo-bixby-tiktok-byetance-customer-cloud-edge-computing-platform-2020-11?r=US&amp;IR=TIR=T">Fastly's single largest client</a> and the saga with Trump forcing a sale sent Fastly's stock plunging. </li><li>Twitch apologized for the way it handled music copyright. The streaming service apologized for removing streams and clips after <a href="https://www.theverge.com/2020/11/11/21560913/twitch-streamers-dmca-copyright-tools-apology?scrolla=5eb6d68b7fedc32c19ef33b4">an onslaught of takedown notices</a>.</li></ol>

You Searched For "sb northstar" and got 5 results

SoftBank is reportedly under investigation by the SEC following its risky 'Nasdaq whale' investments

Tyler Sonnemaker

SoftBank will unwind the 'Nasdaq whale' options trades that cost the firm nearly $3 billion, report says

Ben Winck

SoftBank CEO Masayoshi Son racked up a $3.7 billion loss trading daily moves in tech stocks — and the risky investments are concerning the company's 2nd-biggest shareholder

Ben Winck

Pacific Biosciences spikes 29% after announcing a $900 million investment from SoftBank

Will Daniel

10 things in tech you need to know today

Shona Ghosh