Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

SoftBank posts loss, with a cumulative loss of $6.3B in its Vision Fund business | TechCrunch

Aug 08, 2023 - techcrunch.com
SoftBank Group reported an unexpected consecutive quarterly overall loss, including a continued loss in its existing investment business. The company's Vision Fund 1 and 2 and its Latin American fund together posted a quarterly investment loss of 13 billion yen ($91 million), significantly less than the 2,919 billion yen loss a year ago ($20 billion). However, investments across the three funds are still totaling to a $6.3 billion loss as of June 30. SoftBank Group's net loss was 477.6 billion yen ($3.3 billion), contrary to analysts' expectations of a return to profitability.

The company's total commitments across the Vision Funds 1 and 2 and its LatAm fund is $166.2 billion, with acquisition costs calculated at $146.6 billion and the fair value of the assets currently at $140.3 billion. The Latin American business saw a boost largely from the sale of Pismo, a SoftBank portfolio company, to Visa for $1 billion in June. However, share price declines in holdings in Alibaba, Deutsche Telekom, and T-Mobile US further dragged down SoftBank's overall total loss on investments in the quarter to 699 billion yen (around $4.9 billion).

Key takeaways:

  • SoftBank Group posted an unexpected consecutive quarterly overall loss, with its Vision Fund 1 and 2 and its Latin American fund together posting a quarterly investment loss of 13 billion yen ($91 million).
  • The company's total commitments across the Vision Funds 1 and 2 and its LatAm fund is $166.2 billion, with acquisition costs calculated as $146.6 billion, and fair value of the assets currently as $140.3 billion.
  • SoftBank's Latin American business had a boost largely from the sale of Pismo, one of SoftBank’s portfolio companies, to Visa for $1 billion in June.
  • SoftBank's Japanese subsidiary launched a new business called SB Intuitions, which will build a Large Language Model and generative AI services focused specifically on Japanese and Japan’s businesses and consumers.
View Full Article

Comments (0)

Be the first to comment!