TOKYO (Reuters) – the Quarterly earnings of the SoftBank Group, Corp. was basically wiped out as the Japanese technology giant, was hit by a second consecutive quarter, due to losses incurred on a $100 billion Vision for this Fund.
FILE PHOTO: The logo of SoftBank Group, Corp, is displayed at SoftBank World in 2017 conference to be held in Tokyo, Japan, on July 20, 2017. (REUTERS photo/Issei Kato/File Photo
Wednesday’s dismal results will continue to be able to dampen the enthusiasm of the investors and the founder, Masayoshi Son’s big bets on the untested start-ups. As a Son, told a press conference, SoftBank, had turned a corner, and he said that he has been forced to scale back in a second, the Vision Fund will invest only in SoftBank’s own share capital.
This is a significant climbdown from July, when they turned and said that it had attracted $108 billion in commitments, for a second, ‘ mega-fund.
More pointedly, it demonstrates how to use the bailout from the start-up WeWork last year, and the other record will have a chill on the tech investment scene and are given a SoftBank shareholder has The ammunition to lobby for a change.
“We’ve caused a lot of concern,” the Son said in Tokyo the following are the results that they need in order to “give everybody a piece of your mind” in order to secure outside funds for the Vision, Fund-2.
The profit of the group was 2.6 billion yen ($24 million) in the October-December quarter, compared to 438 billion yen the previous year. The aim of the Fund is recorded as a net operating loss of 225-billion-yen ($2.05 billion) for the quarter, compared to a 176 billion-yen profit in the same period of the previous year.
But the Son, who is known to be an ebullience and charisma that is rare in corporate Japan, said the company’s performance has improved.
“The tide is turning,” he said.
The son pointed to a rally in the prices of the Vision of the Fund as a handful of publicly-traded securities and with the news overnight that a US federal judge dismissed an antitrust challenge to the merger of SoftBank with Sprint Corp. and T-Mobile usa, Inc.
Shares of SoftBank finished up 12% in Tokyo, before the results and after the end of the judgment of the district court.
The son has long been debated SoftBank’s shares are undervalued, a position shared by the US hedge fund, Elliott Management, which has recently emerged as a prominent shareholder. As one of the world’s best-known activist investors, has been pushing for changes, including a $20 billion stock buyback, the sources said last week.
SoftBank has held discussions with the fund and is geared to the enhancement of the shareholder value of your company, the Son said, adding that at the opening of the potential to buy-back their shares, and that he was “in no hurry” to sell it as part of a 26% stake in Alibaba to fund the buy-back.
The Vision of the Fund, which is funded by the kingdom of Saudi Arabia, and has single-handedly changed the face of the technology to invest in, it said that it had invested $74.6 billion, with 88 companies as of the end of December, when these investments were made, valued at $79.8 billion.
Analysts have said that it’s hard to judge they turned to run, due to a lack of disclosure around the Vision Fund is an internal values.
Son’s investment credentials took a hit in August / September quarter, which is the aim of the Fund took an $8.9 billion profit.
Since then there has been a lot of companies in the portfolio, a hotel-booking platform, Oyo, cloud robotics, a company CloudMinds the right jobs and are under pressure to show that the long-term viability of their business models.
The fund itself has a loss of key employees.
Report by Sam Nussey; Editing by Christopher Cushing, David Dolan and Mark Potter