Good Bad Billionaire: Masayoshi Son - High-Tech Gambler

Episode Release Date: May 19, 2025
Hosts: Simon Jack (BBC's Business Editor) and Zing Tsjeng (Journalist, Author, and Podcaster)

Introduction

In this riveting episode of Good Bad Billionaire by the BBC World Service, hosts Simon Jack and Zing Tsjeng delve deep into the life and career of Masayoshi Son, the enigmatic founder and CEO of SoftBank. Known for his audacious investments and relentless pursuit of technological innovation, Masayoshi Son's journey from humble beginnings to becoming a prominent figure in the global tech landscape is both inspiring and cautionary.

Early Life and Humble Beginnings

Masayoshi Son was born in August 1950 in a shack shared with pigs on squatted land in Kyoshu, Japan. As a third-generation Zainichi Korean, Son's family faced institutionalized discrimination, being regarded as foreigners despite their long-standing presence in Japan. His father, Mitsunori, worked tirelessly—first raising pigs and later running pachinko parlors—to lift the family out of poverty.

Notable Quote:

Simon Jack [04:35]: "He was the second of four boys with his family living on this squatted land next to a railway station."

Despite the hardships, Son recalls his childhood fondly, although a pivotal incident where he was physically bullied by Japanese children made him acutely aware of his outsider status.

Educational Pursuits and Entrepreneurial Spark

Son's ambition to transcend his circumstances led him to the United States at a young age. At 16, after persistent efforts to secure a meeting with Den Fujita—a successful Japanese businessman known for introducing McDonald's to Japan—Son received life-changing advice: "Don't look at the past, look at the future. Industries, the computer industry. That's what you should focus on." [08:56]

Embracing this guidance, Son immersed himself in American education, swiftly earning a high school diploma in just two weeks and later attending the University of California, Berkeley, where he studied economics and computer science. His entrepreneurial spirit was evident early on; at 20, Son developed a talking word translator prototype, which he sold to Sharp for $423,000 in 1979 [12:28].

Founding SoftBank and Early Ventures

In 1981, leveraging his early success, Son founded SoftBank with an initial focus on distributing software for personal computers in Japan—a market underserved at the time. Despite early setbacks, including skeptical partners and limited sales, Son's determination paid off when he secured an exclusive deal with a major Japanese electronics chain, propelling SoftBank's growth [17:25].

Notable Quote:

Simon Jack [15:10]: "SoftBank, an incredibly famous institution. Now, this is the company that will make Masa a billionaire."

By 1990, a pivotal joint venture with Novell transformed SoftBank from a mere software distributor to a significant player in the networking industry, prompting the company to drop "Japan" from its name and adopt a global outlook [24:41].

Rise to Billionaire Status and Strategic Investments

The late 1990s marked Son's entry into the billionaire club, driven by strategic investments in burgeoning internet companies. His bold move to invest $355 million in Yahoo in 1996 eventually yielded immense returns, positioning SoftBank as a formidable force in Silicon Valley [30:32]. However, this meteoric rise was followed by the dot-com crash, during which SoftBank's valuation plummeted, resulting in a staggering 96% loss of Son's wealth [33:11].

Undeterred, Son pivoted towards digital telecommunications, securing crucial investments like Alibaba, which later became one of the most lucrative investments in history. His ability to rebound demonstrated his unshakable confidence and strategic acumen [34:54].

Notable Quote:

Zing Tsjeng [34:54]: "And that investment single-handedly saved Masayoshi Son after that dot com crash."

Vision Fund and Contemporary Investments

Expanding his investment portfolio, Son established the Vision Fund, an ambitious $100 billion venture fund aimed at shaping the future of technology. This fund attracted significant investments, including a $45 billion tranche from Saudi Arabia's Mohammed Bin Salman in a notably swift and charismatic negotiation [37:59].

Despite facing challenges such as failed investments in WeWork and Wirecard, Son continues to influence the tech landscape through substantial investments in AI and other cutting-edge technologies [39:52].

Philanthropy and Personal Traits

Son's philanthropic endeavors are relatively understated compared to his expansive business activities. While he operates a charitable foundation supporting youth with high aspirations, detailed information about his philanthropic contributions remains scarce [43:06].

Notable Quote:

Simon Jack [43:20]: "The information on his philanthropy. You've got a feeling that if there was more of it, we'd hear more about it."

Son's personality is characterized by relentless confidence, charismatic fundraising abilities, and a visionary outlook, albeit with moments of overconfidence that have led to significant financial setbacks.

Power, Legacy, and Ethical Considerations

Son wields considerable influence in both Japan and the global tech industry. His strategic investments have shaped the fortunes of numerous companies and altered the investment landscape. However, his aggressive investment style has also been criticized for encouraging risky ventures and contributing to market volatility [41:53].

Notable Quote:

Zing Tsjeng [41:53]: "He's reshaped the tech investment landscape, convincing both his backers and entrepreneurs that companies like Uber and WeWork can scale in the same way as businesses which manage software and data, but only if they take enough of his money."

Despite the mixed outcomes of his investments, Son's legacy as a pivotal figure in technology and entrepreneurship is firmly established.

Judgment: Good, Bad, or Just Another Billionaire

In assessing Masayoshi Son, Simon Jack and Zing Tsjeng evaluate him across several dimensions:

• Wealth:
  Score: 9/10
  Son's rise from poverty to a $29 billion fortune exemplifies extraordinary financial success.

• Villainy:
  Score: 2-3/10
  While Son has shown questionable business ethics early on, such as not compensating a business partner appropriately, these actions are relatively minor in the broader context of his career.

• Philanthropy:
  Score: 1/10
  Limited transparency and impact in his philanthropic efforts warrant a low score.

• Power and Legacy:
  Score: 7-8/10
  Son's influence on global technology investments and his role in shaping major tech companies underscore a significant legacy.

Final Verdict:
Just Another Billionaire
Despite his unique journey and impactful investments, Son embodies many traits common among billionaires—unwavering confidence, strategic risk-taking, and significant influence without prominent philanthropic recognition.

Conclusion

Masayoshi Son's story is a testament to the power of vision, persistence, and audacity in the world of high-stakes technology investment. While his aggressive strategies and monumental successes place him among the elite, his narrative also serves as a reminder of the volatile nature of fortune and the ethical imperatives that accompany immense power.

For more insights into the lives of the world's wealthiest individuals, tune in to the next episode of Good Bad Billionaire.