SoftBank founder Masayoshi Son becomes $6 billion poorer; value slides down to $13.8 billion

Share This Post

SoftBank founder Masayoshi Son loses $ 6 million after his strategy of aggressively investing in tech startups, like Uber & WeWork, backfired. The Japanese billionaire’s value slid down to roughly $ 13.8 billion, according to Bloomberg Billionaires Index, after peaking at around $ 20 billion in July, as reported by Bloomberg

 

WeWork IPO failure

The Japanese conglomerate’s founder plans to reveal the details of the damage caused on Wednesday. SoftBank’s primary investment vehicle for startups, The Vision Fund, plans to swallow a charge of a minimum of $ 5 billion. One of the reasons for consuming the cost is the significant failure of WeWork’s IPO attempt. The US giant that raised money at a $ 47 billion valuation in January was said to be valued at less than $ 8 billion in the rescue package. 

The analysts expect the Japanese firm to post a net loss worth $2.8 billion in comparison to the previous year’s $ 4.6 billion profit approximately. Further, various questions were raised to reaccess the valuation of the poor performer of the marquee investments of the firm like ride-hailing firm Didi Chuxing & Indian hotel startup Oyo Rooms

 

Uber’s dip

The company might book a $ 3.54 billion drop in the value of its Uber stake along with a combined writedown for Wework at around $ 2.82 billion, with a predicted fall in the company’s value from $24 billion to $ 15 billion, but remains uncertain.

According to ET, billionaire’s net worth excludes his $ 8.3 billion value of SoftBank share staked as collateral for his personal loan from 19 banks. Son has also vowed 38% of his stake in the Japanese firm. 

Son has even leveraged out his stake in the Vision Fund that is the world’s only largest investment pool for startups. He loaned himself around $ 3 billion to invest in the first Vision Fund, sources close to the matter said.

Amir Anvarzadeh, a market strategist at Asymmetric Advisors Pte in Singapore, said, “Son is desperate enough to potentially announce another big buyback to show his confidence in the business and the Vision Fund.”

+ posts

A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

Related Posts

NFT Domains, what the heck are they? An introduction to Quik.com & ENS Domains

Before getting to the main question of what exactly...

Coworking, Explained.

TimesNext Recommended: BiggBang Coworking, the Best Coworking Space in...

GOI Forms Committees to Scrutinize Crypto Ads, Fake Reviews, and Ed-tech Firms

The government intends to tighten the noose to safeguard...

Global Bitcoin Use Will Reach 10% By 2030, Says Blockware

Bitcoin acceptance could be faster than that of previous disruptive...

Samsung Asset Management to Launch a Blockchain-Themed ETF

Samsung Asset Management (SAMHK), a Hong Kong-based subsidiary of...

EU Lawmakers to Ban Sales of New Combustion Engine Cars From 2035

On Wednesday, the European Parliament backed a proposal to...