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SoftBank Looks to Raise Billions More Against Arm and Uber Stakes

SoftBank, which controls the $93 billion Vision Fund, wants to raise even more money. The Japanese investment giant is in talks with banks to raise as much as $5 billion in new debt by using its U.K. chip subsidiary Arm as collateral, according to people familiar with the matter.

At the same time, SoftBank is also considering how it might use its newly acquired 15% stake in Uber to raise additional capital, one of the people said. The financing option tied to Uber shares is still hypothetical—it’s not clear whether Uber would allow it—and may not be pursued. Still, SoftBank’s willingness to consider both fundraising deals shows how the company, unlike traditional venture capitalists, uses its stakes in major tech companies to raise more money to pursue more investments.

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The risk of this strategy is that a stock market correction or any drop in its shareholdings could put intense pressure on SoftBank by slicing the value of the collateral for its various loans.

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