Masayoshi Son

Early Life and Background

Masayoshi Son was born on August 11, 1957, in Tosu, Saga Prefecture, Japan. He is the second of four children in a family of Zainichi Korean descent, a term referring to ethnic Koreans who are long-term residents of Japan. His family adopted the Japanese surname "Son" (孫), which is a common Korean surname (손, Son), to assimilate into Japanese society. His birth name was Son Jeong-ui. His family immigrated from Korea and initially engaged in farming, later operating a pachinko parlor and a restaurant. From a young age, Son displayed an exceptional entrepreneurial drive. At the age of 16, he moved from Japan to California, United States, to pursue his education, demonstrating an early inclination towards seeking broader opportunities and experiences beyond his immediate environment. During this formative period, he was significantly influenced by the autobiography of Ray Kroc, the founder of McDonald's, which solidified his ambition to build a major enterprise.

Education

After moving to California, Masayoshi Son attended Serramonte High School in San Francisco, completing his high school education. He then enrolled at the University of California, Berkeley, where he pursued a Bachelor of Arts degree in Economics. He graduated in 1980. His time at Berkeley was not only academically productive but also marked by his first significant entrepreneurial ventures. While still a student, Son developed an electronic dictionary and secured a patent for a multi-language translator, which he successfully sold to Sharp Corporation for a substantial sum of $1.7 million, making his first million dollars before even graduating. He also imported Space Invaders arcade games from Japan, placing them in university dorms and local restaurants, further honing his business acumen and demonstrating his ability to identify and capitalize on market opportunities.

Career

Masayoshi Son's illustrious career began immediately after his graduation. In September 1981, he founded "Japan SoftBank" in Tokyo, which later evolved into the multinational conglomerate SoftBank Group Corp. Initially, SoftBank operated as a software distributor. Recognizing the nascent potential of the personal computer market, Son quickly expanded into publishing, launching prominent computer magazines such as PC Magazine and Oh! PC, which became significant platforms for the burgeoning tech community in Japan. By the mid-1990s, SoftBank had established itself as a major player in software distribution and publishing, and Son began to pivot towards the burgeoning internet sector.

A pivotal moment came in 1995 when SoftBank made an early and strategic investment in Yahoo! Inc., acquiring a significant stake. This move positioned SoftBank at the forefront of the internet revolution. During the dot-com boom of the late 1990s, Son invested aggressively in numerous internet companies, leading SoftBank's market capitalization to briefly surpass that of Toyota, a testament to his foresight and bold strategy. Although SoftBank, like many tech companies, faced a severe downturn during the dot-com bust in the early 2000s, its value plummeting significantly, Son navigated the crisis and emerged resilient.

Perhaps his most famous and successful investment came in 2000 when SoftBank invested a mere $20 million in the then-unknown Chinese e-commerce startup Alibaba Group, acquiring a 34.4% stake. This investment would later be valued at over $100 billion, becoming one of the most successful venture capital investments in history and cementing Son's reputation as a visionary investor.

In the 2000s, Son strategically moved into the telecommunications sector. In 2006, SoftBank acquired Vodafone Japan's mobile operations for ¥1.75 trillion (approximately $15 billion), a highly leveraged deal that transformed SoftBank into a major mobile carrier in Japan, rebranded as SoftBank Mobile. Under his leadership, SoftBank Mobile was instrumental in introducing the Apple iPhone to the Japanese market.

The 2010s saw SoftBank's global expansion accelerate dramatically. In 2013, SoftBank acquired Sprint Corporation, a major U.S. mobile carrier, for $21.6 billion, though Sprint later merged with T-Mobile US in 2020. In 2016, SoftBank made another monumental acquisition, purchasing ARM Holdings, a British semiconductor and software design company renowned for its chip designs, for £24 billion (approximately $32 billion). This acquisition underscored Son's belief in the future of the Internet of Things (IoT) and artificial intelligence.

The most ambitious undertaking of Son's career materialized in 2017 with the launch of the SoftBank Vision Fund. This technology-focused venture capital fund, with initial capital exceeding $100 billion, primarily backed by Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala Investment Company, revolutionized the scale of venture capital. The Vision Fund invested in numerous high-profile tech companies globally, including Uber, WeWork, Didi Chuxing, OYO, DoorDash, and ByteDance, among many others. In 2019, Son launched Vision Fund 2, continuing his aggressive investment strategy aimed at shaping the future of technology.

Major Achievements

Masayoshi Son's career is marked by a series of transformative achievements. He founded and built SoftBank Group into a global technology and telecommunications powerhouse. His pioneering investments in internet and technology companies, most notably Yahoo! and Alibaba, demonstrated unparalleled foresight and generated immense returns. He successfully transformed SoftBank into a major telecommunications provider in Japan, directly challenging established players. The establishment of the SoftBank Vision Fund, with its unprecedented scale, redefined the landscape of venture capital, enabling massive investments in emerging technologies and startups worldwide. Son has also successfully navigated multiple economic cycles, including the dot-com bust and the global financial crisis, demonstrating remarkable resilience and strategic adaptability. His vision and execution have led to SoftBank holding stakes in some of the world's most innovative and impactful companies, solidifying his legacy as one of the most influential figures in global business and technology.

Controversies

Masayoshi Son's aggressive investment style has occasionally led to controversies and significant financial risks. During the dot-com bubble, SoftBank's highly leveraged investments drew criticism, though Son ultimately recovered. More recently, the high-profile investment in WeWork and its subsequent failed initial public offering (IPO) in 2019, followed by a dramatic drop in valuation, resulted in substantial losses for the Vision Fund. This episode led to widespread criticism regarding SoftBank's due diligence processes and governance practices, with Son publicly acknowledging the failure and taking responsibility. SoftBank has also faced scrutiny over its historically high debt levels, which have fueled its numerous large-scale acquisitions and investments, raising concerns among financial analysts about the company's balance sheet. Furthermore, questions have been raised regarding the influence of SoftBank's major limited partners, particularly sovereign wealth funds from Saudi Arabia and Abu Dhabi, on the investment decisions and strategic direction of the Vision Fund.

Personal Life

Masayoshi Son is married to Masami Ohno. Together, they have two daughters. Son is known for his intense work ethic, often working long hours and maintaining a relentless focus on his long-term vision. He is also recognized for his philanthropic efforts; following the devastating 2011 Tohoku earthquake and tsunami in Japan, he pledged ¥10 billion (approximately $120 million at the time) of his personal fortune and offered free internet access to the victims. Son has often spoken about his broader philosophical interests, including his desire to extend human lifespan and his belief in the power of technology to address societal challenges and improve humanity. He is a private individual despite his public profile, with his personal life generally kept out of the media spotlight.

Legacy

Masayoshi Son is widely recognized as one of the most influential and transformative figures in the global technology and venture capital landscape of the late 20th and early 21st centuries. He is celebrated as a visionary investor who not only foresaw the internet revolution but also actively shaped its trajectory through strategic early investments in companies like Yahoo! and Alibaba. His investment in Alibaba is frequently cited as one of the greatest venture capital deals ever executed. Through the creation and strategic deployment of SoftBank and the SoftBank Vision Funds, he has profoundly impacted the development and growth of countless technology companies across various sectors, including ride-sharing, e-commerce, artificial intelligence, and robotics. Son's aggressive, often contrarian, and large-scale investment approach has left an indelible mark on the financial world, challenging traditional venture capital models and demonstrating the potential for massive capital deployment to accelerate technological innovation globally. His legacy is defined by his unwavering belief in the power of information technology and his relentless pursuit of a future where technology addresses humanity's greatest challenges.