More On: Coronavirus
Joe Biden Tests Positive for Wuhan Coronavirus Again
Aaron Rodgers, Green Bay Packers Fined for Violating COVID-19 Protocols
Shailene Woodley Defends Aaron Amid Rumored COVID-19 Quarantine Outings
Howard Stern: Aaron Rodgers Should Be Fired for 'Bulls--t' Vaccine Comments
Emilio Estevez Denies Being Anti-Vax After Exiting 'Mighty Ducks' Series
SoftBank warned investors that it expects to report a massive loss this year, thanks in part to the coronavirus wreaking havoc on already-struggling investments like WeWork. The Japanese conglomerate said in a statement that its famed $100 billion Vision Fund will see an operating loss of $12.5 billion for the fiscal year, its third consecutive …
SoftBank warned investors that it expects to report a massive loss this year, thanks in part to the coronavirus wreaking havoc on already-struggling investments like WeWork.
The Japanese conglomerate said in a statement that its famed $100 billion Vision Fund will see an operating loss of $12.5 billion for the fiscal year, its third consecutive quarterly loss.
The fund attributed the performance to “the deteriorating market environment” amid the global coronavirus pandemic — which has infected nearly 2 million people around the world and killed more than 100,000 — as well as its disastrous bets on office-leasing company WeWork and other startups.
The pandemic has undermined predictions by SoftBank CEO Masayoshi Son, who just two months ago said “the tide is turning” and pointed to recovery at WeWork, forcing him into a major sell down of core assets to raise cash.
The tech conglomerate said it would book a $7.4 billion loss on investments outside the fund including in WeWork and satellite operator OneWeb, which last month filed for Chapter 11 bankruptcy after SoftBank declined to provide further funding, contributing to a net loss of $6.9 billion.
SoftBank earlier this month announced that it would be pulling the plug on a $3 billion tender offer as part of its rescue plan for WeWork, prompting the company’s board to sue.
SoftBank did not disclose which Vision Fund tech bets were being marked down in the fourth quarter.
Activist investor Elliott Management wants greater transparency at the fund, whose nebulous valuations have contributed to the group’s persistent conglomerate discount.
The group’s shares are down by more than 17 percent this year.
With Post wires
