Son Masayoshi "Fierce Investment" in Autonomous Driving

Wallstreetcn
2023.12.06 00:57
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SoftBank, led by Masayoshi Son, plans to acquire Cubic Telecom in Ireland to enter the field of connected cars. SoftBank will pay 473 million euros to acquire a 51% stake in Cubic Telecom, which will increase Cubic's valuation to over 900 million euros. The transaction is expected to be completed in the first half of next year. Cubic provides network connectivity services to approximately 17 million vehicles worldwide, and SoftBank hopes to accelerate global expansion through this collaboration. Citing a McKinsey research report, both companies believe that the connected car market is expected to generate billions of dollars in revenue by 2030, with approximately 95% of new cars equipped with network connectivity. This acquisition will help Cubic expand its market share.

Despite the losses in several high-profile investments such as WeWork, Mr. Masayoshi Son has not been defeated. Recently, he has been "chatting with ChatGPT every day," and now he has become fascinated with autonomous driving.

According to a statement released by the company, SoftBank's mobile business division is acquiring an Irish company specializing in connected car technology, betting on autonomous driving.

SoftBank will pay EUR 47.3 million to acquire a 51% stake in Cubic Telecom, headquartered in Dublin, bringing Cubic's valuation to over EUR 900 million. The acquisition is expected to be completed in the first half of next year, pending regulatory approval.

Connected car technology is one of the key technologies required for autonomous vehicles and is an area of focus for Mr. Masayoshi Son. This year, SoftBank Group signed an agreement to invest USD 280 million in Mapbox, an AI mapping and navigation software manufacturer. SoftBank is also expected to invest approximately USD 1 billion in autonomous truck startup Stack AV.

Cubic provides network connectivity services to over 17 million vehicles in more than 190 countries, accounting for approximately 10% of the global connected car market (excluding China). Cubic has not disclosed financial details, including profitability.

The two companies plan to leverage SoftBank's extensive satellite coverage and Cubic's proprietary technology in the automotive field to accelerate global expansion. Citing a McKinsey research report, the two companies state that the connected car market is expected to generate billions of dollars in revenue by 2030, with approximately 95% of new vehicles equipped with network connectivity.

Cubic states that providing internet connectivity to vehicles requires complex technological integration, as well as layers of regulatory approval and compliance requirements. The acquisition by SoftBank is expected to help Cubic double its current market share or even increase it by two-fold.

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