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11-08-2022, 11:05 AM
Speaking to comment on the company's results, the CEO of Softbank explained that while SoftBank's first quarter of 2022/23 had been marked by significant investment losses, mainly related to its Vision Fund 1 and 2 funds ( for more than 2.8 trillion yen, or 20 billion euros), it was also because of rising interest rates and political instability that hit markets around the world.
So today, the billionaire promised to go further: he limited the second fund (Vision Fund 2) to the management of his current investment portfolio, while planning staff reductions at the Vision Fund and cost reductions across the group.
SoftBank wrote down the value of the unlisted assets of its two Vision 1 and 2 funds by 1.14 trillion yen ($8.45 billion).
Yet there had already been warnings when notably the CEO suffered a series of high-profile setbacks following the big bets of the first fund Vision Fund 1 in start-ups in the final stages of development - like that of WeWork (sharing of offices) in which Softbank invested more than 10 billion dollars - which turned sour, which had prompted it to tighten control of investments in the second fund.
Falling IPO volumes combined with growing market skepticism about chronically loss-making start-ups have severely dried up capital inflows for SoftBank. Which still hopes to be able to IPO the chip designer Arm after the failure of a sale to Nvidia.
Witnessing the difficulty of the current economic climate for tech, the hedge fund Tiger Global, Son's major competitor on the markets, had underestimated the impact of galloping inflation on the markets: he saw his fund principal fall by 50% in the first half of the year.
Meta, the parent company of Facebook, Instagram, WhatsApp and Oculus, is also going through unprecedented difficulties in its history. As it carries out a major strategic overhaul, the company is in danger in its historic online advertising market. For the first time in its history, the turnover is down, the growth of users is weak, not to mention the metaverse which is not taking off...
https://www.latribune.fr/entreprises-fin...27824.html
So today, the billionaire promised to go further: he limited the second fund (Vision Fund 2) to the management of his current investment portfolio, while planning staff reductions at the Vision Fund and cost reductions across the group.
SoftBank wrote down the value of the unlisted assets of its two Vision 1 and 2 funds by 1.14 trillion yen ($8.45 billion).
Yet there had already been warnings when notably the CEO suffered a series of high-profile setbacks following the big bets of the first fund Vision Fund 1 in start-ups in the final stages of development - like that of WeWork (sharing of offices) in which Softbank invested more than 10 billion dollars - which turned sour, which had prompted it to tighten control of investments in the second fund.
Falling IPO volumes combined with growing market skepticism about chronically loss-making start-ups have severely dried up capital inflows for SoftBank. Which still hopes to be able to IPO the chip designer Arm after the failure of a sale to Nvidia.
Witnessing the difficulty of the current economic climate for tech, the hedge fund Tiger Global, Son's major competitor on the markets, had underestimated the impact of galloping inflation on the markets: he saw his fund principal fall by 50% in the first half of the year.
Meta, the parent company of Facebook, Instagram, WhatsApp and Oculus, is also going through unprecedented difficulties in its history. As it carries out a major strategic overhaul, the company is in danger in its historic online advertising market. For the first time in its history, the turnover is down, the growth of users is weak, not to mention the metaverse which is not taking off...
https://www.latribune.fr/entreprises-fin...27824.html
![[Image: Screenshot-from-2022-07-28-18-44-17.png]](https://i.ibb.co/XLtpBW4/Screenshot-from-2022-07-28-18-44-17.png)
