SoftBank said Wednesday that it expects
a special loss on the value of its shares of
subsidiaries and associates of nearly 498 billion
yen ($4.6 billion) for its non-consolidated
financial statement for the fiscal year ending in
March 2020.
Last month, SoftBank announced a bailout
for WeWork, including $5 billion in new
financing, a tender offer of up to $3 billion
for existing WeWork shareholders and an
acceleration of an earlier promise of $1.5 billion
in funding.
Although startups always carry a bit of risk,
until recently SoftBank’s diverse portfolio had
helped offset any money-losing investments.
Son’s charisma and global perspective have
also worked in SoftBank’s favor.
But questionable corporate governance
practices at WeWork have landed SoftBank
in a crisis, he acknowledged at its earnings
news conference.
Various negative media reports about WeWork
were “true in some sense,” Son said.
“The perception is that SoftBank is being
dragged down into the quagmire of WeWork,”
he said. “I am looking back with true regret
about the mistaken investment moves that I
have made.”
SoftBank’s investment fund called Vision
Fund sank into losses, but Son said that
overall, its investors are still reaping profits
from their total investments and the Vision
Fund’s value for shareholders has not fallen
despite the latest losses thanks to stock price
gains of other holdings.