“SoftBank Grapples with $14.3 Billion WeWork Loss, Launches Inquiry into Root Causes”


“SoftBank Vision Fund reports a $3.86 billion investment loss in H1 2023, citing lower share prices and reduced fair values. Despite increased investment activity, SoftBank remains selective and strategic, with a focus on AI disruptors globally. The company invests in an Israeli cybersecurity firm amid geopolitical challenges, emphasizing a long-term commitment to successful ventures.”

"SoftBank Vision Fund Registers $3.86 Billion Investment Loss in H1 2023, Focuses on Selective and Strategic Investments"
"SoftBank Vision Fund Registers $3.86 Billion Investment Loss in H1 2023, Focuses on Selective and Strategic Investments"

In the six months ending September, SoftBank Vision Fund (SVF) reported an investment loss of $3.86 billion, excluding gains on subsidiary bets, primarily attributed to the decline in share prices of its listed portfolio companies and reduced fair values of private portfolio companies. While SVF showed improvement with a $3.7 billion investment loss in the September quarter, compared to a $9.5 billion loss in the same period last year, it marked a significant decline from the $86 million gain in the June quarter of this year.

SVF recorded a segmental gain of $1.2 billion on investments, encompassing gains associated with investments in Arm and other SoftBank group subsidiaries. Despite SoftBank’s increased investment activity in recent quarters, it has not returned to its previous practice of betting billions of dollars in a single go.

The company invested $1.5 billion in the September quarter, following investments of $1.8 billion in the June quarter and $500 million in each of the preceding three quarters. SoftBank remains selective in its investment approach, stating that it is prepared for substantial opportunities when they arise.

When questioned about SoftBank’s strategy in Israel amid ongoing geopolitical turmoil, the company disclosed its investment in a cybersecurity firm in the country during the September quarter. SoftBank emphasized its focus on AI disruptors globally, expressing a long-term investment horizon and commitment to supporting successful companies, regardless of their location.

While SoftBank management elaborated on its AI thesis and investments, it declined to comment on reports of a collaboration between Masayoshi Son, OpenAI CEO Sam Altman, and former Apple designer Jony Ive to establish a hardware company in the AI space.

Sources By Agencies

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