SoftBank to Sell Majority of Alibaba Stake, Alibaba Shares Tumble.

SoftBank is preparing to sell more of its stake in Alibaba, reducing its ownership to less than 4%. The move is part of SoftBank's efforts to prioritize financial discipline and unwind its bets on hundreds of startups. SoftBank has already offloaded around $7.3 billion in Alibaba shares this year through prepaid forward contracts. The sale reflects issues with SoftBank, rather than Alibaba, and has no bearing on Alibaba's fundamentals, which are improving, according to analysts. Other long-time China investors have also been lowering their exposure in China.