SOFTBANK'S quarterly profit was almost entirely wiped out yesterday after heavy losses from its Vision Fund hit the technology investor for the second consecutive quarter.
The Japanese conglomerate's operating profit from October to December plummeted 99 per cent to just ¥2.59bn (£18.2m) after its Vision Fund and a related vehicle recorded a $2bn (£1.4bn) loss. Softbank blamed the profit drop on unrealised losses at the $100bnVision Fund, which has been hit by a string of soured bets, including a substantial investment in office sharing startup Wework.
The poor results are likely to deepen concerns about founder Masayoshi Son's ability to raise capital for a second Vision Fund. When he announced the launch of a successor to the fund last summer, Son set a fundraising target of $108bn, but recent reports suggest Softbank may now only be able to raise half that.
However, Son yesterday gave assurances that "the tide is turning".
(c) 2020 City A.M., source Newspaper