SoftBank Shares Drop 8.9% Amid Rising Concerns Over 60% Holding in OpenAI

SoftBank's stock closed 8.9% lower on Friday following the release of its fiscal 2025 third-quarter results. While the company posted a net profit of 2.486 trillion yen, beating the top line but well below analyst expectations of 3.367 trillion yen. The market's primary concern is its over-concentration of assets: Arm and OpenAI now account for 65% of SoftBank's net asset value. OpenAI contributed $4.2 billion in book value gains this quarter, but were offset by write-downs in its venture funds in Coupang and Didi. Net asset value declined 2.4 trillion yen to 30.9 trillion yen from the prior quarter, signaling value erosion. Risks to balance sheets also rose as the company sold its Nvidia stake and sharply reduced T-Mobile holdings, while using Arm (ARM-US) as collateral to increase profit loans. The leverage ratio (LTV) climbed from 16.5% to 20.6%, cash reserves declined, and competition from Google and Anthropic intensifies the peril of being overly tied to a single, unprofitable venture in generative AI.