SoftBank expects a $16.5 billion loss for its Vision Fund as its investments see dismal performance
- According to a Reuters report, the group said it sees a $16.5 billion loss for its $100 billion Vision Fund.
- Meanwhile, the group as a whole will see a $12.5 billion loss.
- The biggest blow to
SoftBankhas come from the failure of one of its biggest bets – WeWork.
The record loss for FY 20 is because of ‘the deteriorating performance of its tech bets’.
Meanwhile, the group as a whole will see a $12.5 billion loss.
AdvertisementThe biggest blow to SoftBank has come from the failure of one of its favourite bet – WeWork.
WeWork, the US-based realty company went under last year as a cloud of dirt exploded from under the carpet at a time when the company was looking to file for an IPO. As its financials were questioned, the value of WeWork dropped from $47 billion to $8 billion.
Recently, SoftBank also withdrew its $3 billion tender offer to WeWork.
But that isn’t the only investment that is worrying SoftBank Chairman
The Indian hospitality unicorn OYO has been under the scanner after hoteliers complained of non-payment of dues and other issues. OYO is hailed as SoftBank’s hot investment in India and was growing at breakneck speed kicking up dirt along the way. After multiple troubles, critics have been comparing OYO to WeWork.
There have been several reports that it was Son who pressurised OYO on the fast growth phase, but soon after the WeWork debacle asked it to focus on profitability instead.
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