Shares of Alibaba took a hit Wednesday after Japan’s Softbank announced that it plans to sell $7.9 billion of its stake in Alibaba in a series of transactions. The purpose of the sales is Softbank’s leverage, the company said in a statement released Wednesday and it will still hold ‘approximately 28 percent of Alibaba’s total outstanding shares following the transactions.’ The company now has a 32 percent stake in Alibaba. The announced sales come at an interesting time for both companies. Alibaba recently announced that it is being investigated by the Securities and Exchange Commission for its accounting practices. Meanwhile, Softbank has had a bit of a tough time on its own. It is currently contending with its investment in troubled mobile-services provider, Sprint whose shares are down more than 20 percent over the last year.
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