SoftBank posts $17 billion Vision Fund loss following tech slump

On Monday, SoftBank Group Corp posted a 2.33 trillion yen ($17.23 billion) loss at its Vision Fund unit in the April-June quarter as the value of its tech portfolio took a dive. The group's sliding portfolio pushed it to a 3.16 trillion yen net loss in the latest quarter. SoftBank had booked a record loss at the Vision Fund unit in May as market turmoil driven by rising interest rates and political instability hit the tech investor.

That compared with a profit of 761.5 billion yen in the same period a year earlier. SoftBank founder and CEO Masayoshi Son, who will speak at an earnings briefing from 4:30 p.m. (0730 GMT), has pledged to tighten investing criteria and preserve cash to weather the downturn.

In the quarter ended in June, falling listed investments included robotics firm AutoStore Holdings Ltd and artificial intelligence firm SenseTime Group Inc. Analysts have said writedowns of private assets are unlikely to reflect the extent of current market weakness. SoftBank said it booked a 296 billion yen loss on the value of Vision Fund's private investments.

Plunging initial public offering volumes and market scepticism towards money-losing startups have squeezed an important source of capital for SoftBank, which hopes to list chip designer Arm following the collapse of a sale to Nvidia. The sell-off has hit hedge fund Tiger Global, which competes with "unicorn hunter" Son on deals and saw its flagship fund fall 50% in the first half of the year after it underestimated the impact of surging inflation on markets, per Gadgets Now.

On Monday, SoftBank Group Corp posted a 2.33 trillion yen ($17.23 billion) loss at its Vision Fund unit in the April-June quarter as the value of its tech portfolio took a dive. The group's sliding portfolio pushed it to a 3.16 trillion yen net loss in the latest quarter. SoftBank had booked a record loss at the Vision Fund unit in May as market turmoil driven by rising interest rates and political instability hit the tech investor.

That compared with a profit of 761.5 billion yen in the same period a year earlier. SoftBank founder and CEO Masayoshi Son, who will speak at an earnings briefing from 4:30 p.m. (0730 GMT), has pledged to tighten investing criteria and preserve cash to weather the downturn.

In the quarter ended in June, falling listed investments included robotics firm AutoStore Holdings Ltd and artificial intelligence firm SenseTime Group Inc. Analysts have said writedowns of private assets are unlikely to reflect the extent of current market weakness. SoftBank said it booked a 296 billion yen loss on the value of Vision Fund's private investments.

Plunging initial public offering volumes and market scepticism towards money-losing startups have squeezed an important source of capital for SoftBank, which hopes to list chip designer Arm following the collapse of a sale to Nvidia. The sell-off has hit hedge fund Tiger Global, which competes with "unicorn hunter" Son on deals and saw its flagship fund fall 50% in the first half of the year after it underestimated the impact of surging inflation on markets, per Gadgets Now.

Wearable tech can change autistic people's lives

TikTok is going to make a comeback in India...

Researchers to Scan Ocean Floor for Meteorite which Crashed on Earth in 2014

- Sponsored Advert -

Most Popular

- Sponsored Advert -