SoftBank Group faces first loss in 15 years
TOKYO - SoftBank Group’s VC arm Vision Fund is expected to post a loss of US$16.71 billion following the declining performance of its tech portfolio, which will bring the conglomerate its first loss in 15 years.
In an official statement released on Monday (13/4), SoftBank attributed Vision Fund’s poor performance to “the deteriorating market environment” caused by the coronavirus (COVID-19) pandemic, with the fund projected to suffer an annual operating loss of US$12.5 billion after a third consecutive quarter of losses.
As reported by Reuters, the Japanese conglomerate’s finances are under pressure following the declining performance of tech startups in its portfolio, including co-working space provider WeWork whose initial public offering (IPO) plans were shelved in 2019 and sent its valuation into a nosedive.
However, two months ago SoftBank CEO Masayoshi Son said WeWork was on the road to recovery despite dire predictions as the COVID-19 pandemic started to escalate.
Ahead of the announcement SoftBank’s stock price closed with a 3.4% drop. Throughout the year, its stock price has declined by 11.7%. (MS)