Softbank Profit Slumps on Alibaba Charge

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Aug. 11 (Bloomberg) –- Bloomberg’s Zeb Eckert reports on Softbank posting a 68% drop in profit last quarter after booking an accounting charge from its stake in Alibaba and as subscriber growth slowed. He speaks to Angie Lau on “First Up.” (Source: Bloomberg)

Mobile.

Japanese giant softbank -- a safety -- a 60% drop in profit last quarter.

Is it all bad news?

Zeb eckert is here to make sense of what has been a tough week or billionaire founder -- for the billionaire founder.

Last week, sprint dropped its takeover bid for t-mobile.

Regulatory concerns.

On friday, softbank reporting 68% drop in latest quarter profit.

This of course to the prophet number down to $763 million.

That is because they had to pay a fine for an accounting charge related to alibaba's shares.

The sentiment isn't all that bad if you look through some of the analyst notes today.

In terms of mobile phone sales, subscriber growth, they are generally in line with expectations, but they face increasing headwinds in the japanese market.

That is because the rival is upping its incentive for customers, luring customers from softbank overfed -- over to docomo.

They're offering dismounts.

The domestic competition continues to be a challenge for softbank.

We are waiting for the shares to open in tokyo.

I can tell you they did fall in the order of 3% friday.

And fell on friday because the tie up that was expected to be the thing for him to hang his hat on, sprint and t-mobile, he had to walk away.

He said regulatory hurdles were too great.

It kind of lens the question, what are the plans for america?

For sprint, there are a lot of questions.

Sprint is the number three mobile carrier in the u.s. market behind verizon and at&t wireless.

They command the biggest share of customers, and sprint has traditionally had a challenge in terms of winning over some of those customers from those other rivals.

They have a larger presence around the country.

They have water penetration in terms of their mobile network.

If you are a verizon customer, you are likely to get service in more places than if you are a sprint customer.

This is the lingering challenge for sprint.

Now that the tie up with t-mobile doesn't appear to be happening, they face a lot of questions.

The ceo at the press conference in tokyo, he talked about this, not necessarily that the deal fell apart, but he talked about the competitive landscape in the u.s. there have been rumors about the bid for t-mobile, but softbank never made any official comment on this.

I'm not making any statements regarding this issue.

Been rumors about the bid for t-mobile, but softbank never made any official comment on this.

I'm not making any statements regarding this issue.

I believe the marketshare dominated by two bigger u.s. telecom companies is causing unhealthy market conditions.

I think the should be improved.

Perhaps a better way to start the week -- the shares did start trading in tokyo, and it looks like we are starting the day with a gain for shares of softbank.

We saw that big selloff on

This text has been automatically generated. It may not be 100% accurate.

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