SoftBank, in the aftermath of WeWork’s Chapter 11 bankruptcy filing, disclosed a substantial loss of $14.3 billion from its equity and debt investments in the troubled company.
Yoshimitsu Goto, the CFO of SoftBank Group, expressed regret about WeWork’s bankruptcy by stating, “We were very sorry to hear about the bankruptcy. We need to accept this reality and learn lessons from it for our future investment activity. What went wrong is homework for us. We have been valuing WeWork very conservatively. So, there is no surprise for us (in terms of impact on SoftBank’s financials in the last quarter).”
When asked about SoftBank CEO Masayoshi Son’s role in the WeWork situation, Goto noted that while Son was involved in decisions as the CEO, the lessons learned apply to SoftBank as a whole. SoftBank Vision Funds (SVF) reported a loss of $3.86 billion in the six months ending September, attributing it to lower share prices of listed portfolio companies and reduced fair values of private portfolio companies. Despite a significant increase in investing activities,
SoftBank has yet to return to its previous strategy of massive billion-dollar bets.
In the September quarter, SoftBank invested $1.5 billion, maintaining a cautious approach, but expressing readiness for larger investments when significant opportunities arise. Addressing concerns about the ongoing geopolitical turmoil in Israel, SoftBank management mentioned a recent cybersecurity investment in the country and affirmed its commitment to seeking AI disruptors globally, regardless of geopolitical challenges.
While the SoftBank management extensively discussed its AI thesis and investments, it refrained from commenting on reports about a collaboration between Masayoshi Son, OpenAI CEO Sam Altman, and former Apple designer Jony Ive to start an AI hardware company.
