Softbank in cash spending spree paying Cameron Diaz $138 a second

Forgive me for such a speculative headline, but the story reported by Financial Times (FT) yesterday about Softbank’s spending habits made me wonder if the company went too far or just set a new standard. Cameron Diaz reportedly received $3 million for six hours’ work starring in an advertisement for Softbank. If you make the calculation it will translate into $138 a second. The newspaper goes further, stating it is not an exclusive occurrence of such cash burning for Softbank – the telecoms and internet conglomerate is spending at a rate of about $60 a second for more than a decade. The newspaper also refers to some analysts’ concerns about Softbank’s “propensity to burn through cash and its penchant for re-jigging accounting and other methodologies.” Meanwhile, Softbank is Tokyo’s most active stock, with tens of millions of shares trading a day, and one of the volatile, according to FT. Of the 14 analysts covering the stock, just one has a buy recommendation, according to Bloomberg.