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Tiger Global reportedly pours more than $1B into SoftBank, saying its shares are “undervalued”

Tiger Global has poured more than $1 billion into SoftBank Group, according to the Financial Times . The newspaper reports that the firm told investors SoftBank’s shares are “meaningfully undervalued.” In response to a request for comment, SoftBank sent the same statement to TechCrunch as other media outlets: “We continue to believe the market significantly undervalues our stock and we welcome the support from a sophisticated institutional investor like Tiger Global.” Tiger Global and SoftBank share several investments in common, including Alibaba, Flipkart and Uber. According to a quarterly investor letter obtained by the Financial Times, Tiger Global wrote that “the combination of a world-class set of assets trading at a record discount to net asset value strikes us as an odd anomaly that is unlikely to exist forever.” It also said that “in our view, the opportunity to buy the shares cheaply exists today because SoftBank’s stock has not appreciated in nearly five years, even though the value of its Alibaba stake has increased by over $90 billion, more than SoftBank’s entire market capitalization.” The Financial Times reports that Tiger Global believes SoftBank can create an additional $73 billion of value before tax if its $100 billion Vision Fund returns 2.5 times its original investment over the next seven years. Other growth prospects it cited include the upcoming initial public offering of SoftBank Mobile , its Japanese telecoms unit, and the potential merger of Sprint, which SoftBank holds a majority stake in, and T-Mobile, pending regulatory approval.

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Tiger Global Management is killing it right now

It took some time, but Tiger Global Management is starting to wringing some serious paydays out of its tech investments. In one of its biggest wins to date, the secretive, 16-year-old, New York-based hedge fund is reportedly set to make roughly $3 billion off Flipkart, the India-based e-commerce juggernaut that’s selling a majority stake in its business to Walmart for a whopping  $16 billion . Part of that stake includes three-quarters of the roughly 20 percent of Flipkart that Tiger had come to own since writing its first, $9 million, check to the company back in 2009. In a lesser but apparent win, Tiger should also see a return on its investment in Glassdoor, the jobs and salary website that announced yesterday it is being acquired by the Japanese human resources company Recruit Holdings for $1.2 billion in cash. Tiger had led the company’s $50 million Series E back in late 2013 when Glassdoor was still very much expected to go public. Earlier venture backers like Sutter Hill Ventures and Benchmark will see bigger returns as they bought in at the A round when Glassdoor’s valuation was just beginning to ramp up. Still, it’s probably safe to assume that Tiger made a little something, too. One clue is that in 2016, during its Series H round, Glassdoor was assigned a post-money valuation of $1 billion , presumably more than the company was worth when Tiger bought in more than two years earlier. It’s a lot of good news, and it’s saying nothing of Spotify’s direct listing on the stock market last month, another deal that involves Tiger Global. In fact, Tiger had become one of streaming company’s biggest shareholders in recent years, and like Flipkart and Glassdoor, that position is also poised to pay off. Consider that Tiger owned 7.2 percent of Spotify as of its first day of trading in April, and the value of that stake was $1.9 billion. It may still be. Spotify’s shares are trading roughly where they started, and if Tiger has sold any of its stake, it hasn’t revealed as much. (Some of Spotify’s major record label shareholders  have sold theirs and reported as much on their earnings calls.) Either way, you can bet these wins will go a long way with investors, who are probably in the process of committing a lot of money to Tiger Global’s newest megafund

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