SoftBank’s Vision Fund reports $18 billion in losses in ‘valley of pandemic’


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SoftBank’s Vision Fund reports $18 billion in losses in ‘valley of pandemic’

On Monday, the 18th of May 2020, Japanese investment conglomerate, SoftBank Group Corp. reports a stabbing $18 billion in losses at its $100 billion Vision Fund, forcing the SoftBank CEO and founder Masayoshi Son to stomach a record shrugg-off and to brace for a nearly $16.5 billion in annual losses amid deepening economic crises and a flight-to-bankruptcy approach of some SoftBank-backed entities.

In point of fact, a lion-share of $18 billion in operating losses for SoftBank’s Vision Fund was stemmed off a shortcoming of a combined $10 billion from office-space sharing startup WeWork alongside ride-hailing pioneer Uber Technologies, both of which had yet to report a profit.

In tandem, followed by the reveal of Monday’s (May 18th) staggering losses at its Vision Fund amid a global financial downpour almost entirely driven by the pandemic outbreak, SoftBank CEO Son, who has been under tremendous pressure from board members alongside the US activist hedge fund Elliott Management to start-off share repurchases alongside yielding an improvisation in governance, said that the Japanese investment conglomerate would raise as much as 1.25 trillion Japanese Yen by keeping its Alibaba stakes as collateral.

Meanwhile, as the global financial crises have been stripping down Vision Fund’s portfolio with its $75 billion investments on 88 start-ups dwindling to $69.6 billion at the end of first quarter, citing the financial fallouts of the pandemic outbreak, Son said on Monday (May 18th) that some of his tech unicorns had slipped “into the valley of the coronavirus,” adding “I believe some of them will fly over the valley.