SoftBank posts its first quarterly loss in 14 years
The company is hit by major falls in the valuation of some of its biggest tech bets
Stocks impacted: SoftBank Group Corp (9984)
The world’s largest tech investor posted an operating loss of 704 billion yen in the second quarter compared to a 706-billion-yen profit in the same period a year earlier, as the group posted a $5 bln writedown on WeWork and other startups. The Japanese company has used its $100 billion Vision Fund to become a leader in the space by placing major bets on companies it believes have the potential to dominate entire industries. Its Vision Fund, backed with its own money as well as major stakes from Saudi Arabia’s Public Investment Fund and others, suffered a $8.9 billion loss amid falling valuations of WeWork and Uber. After the news, SoftBank shares were trading 0.65% higher as investors had expected some bad news from the company. Since July, the group’s shares lost around 30%, and in order to stem the decline, SoftBank could announce a share buyback at some point in the future.
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