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    9984   JP3436100006


Delayed Japan Exchange  -  02:00 2022-09-30 am EDT
4900.00 JPY   -2.60%
09/30Global markets live: Nike, Meta, Barclays, Cineworld, Boeing...
09/30MarketScreener's World Press Review : September 30, 2022
09/30Swedish Cloud Group Sinch's Shareholder To Sell Entire 5% Stake
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

SoftBank plans Vision Fund job cuts after record net loss

08/08/2022 | 02:19am EDT

* SoftBank was in a bubble on valuations- Son

* No sacred areas for cost cuts- Son

* SoftBank has exited stake in Uber

* Announced Y400 bln share buyback

TOKYO, Aug 8 (Reuters) - SoftBank Group Corp is planning to cut headcount at its flagship Vision Fund investing arm, CEO Masayoshi Son said on Monday, after a crash in the value of its portfolio pushed his conglomerate to a record quarterly net loss.

Vision Fund, which upended the world of venture capital with splashy bets on startups such as ridehailers Uber and Didi, posted a $23.1 billion loss in the April-June quarter as value evaporated from its investments in the market rout.

"The world is in great confusion," Son said at an earnings news conference.

The result caps a tumultous six months for the Vision Fund, which posted a record $26.2 billion quarterly loss in May after SoftBank was caught out by rising interest rates and political instability that hammered markets globally.

Son has already radically scaled back investment activity. The Vision Fund arm approved just $600 million in new investments in the first quarter, compared with $20.6 billion in the same period a year earlier.

On Monday, the billionaire pledged to go further: limiting the second fund just to managing its current portfolio of investments, while planning workforce cuts at Vision Fund and cost reductions across the group.

"We need to cut costs with no sacred areas," Son said.

Son had already suffered a series of high-profile reversals after big bets by the first Vision Fund in late-stage startups such as office sharing company WeWork soured, prompting him to tighten investment controls with the second fund.

However the billionaire said Vision Fund 2, which has taken smaller stakes in a larger number of companies, had invested at frothy prices.

"We were in a kind of bubble on valuations," he said.

The second Vision Fund's portfolio of 269 firms, which cost $48.2 billion to acquire, was worth just $37.2 billion at end-June.

"If we had been more selective and invested better we wouldn't have received this heavy blow," Son said.

Listed investments that fell during the quarter included warehouse robotics firm AutoStore Holdings Ltd and artificial intelligence firm SenseTime Group Inc.

SoftBank wrote down the value of unlisted assets across its two Vision Funds by 1.14 trillion yen ($8.45 billion).

Plunging initial public offering volumes and market scepticism towards money-losing startups have squeezed an important source of capital for SoftBank, which hopes to list chip designer Arm following the collapse of a sale to Nvidia.

To raise cash, SoftBank has exited companies including Uber Technologies and home-selling platform Opendoor Technologies, for a total gain of $5.6 billion.

SoftBank sold Uber at an average share price of $41.47, compared to the Friday closing price of $32.01.

The group has used more than two-thirds of the capital in a 1 trillion yen buyback programme launched last November to support its shares, which have fallen by about half from highs in March last year.

SoftBank on Monday announced an additional share repurchase programme worth up to 400 billion yen to run to August next year. Shares closed up 0.7%, before the earnings were released, in line with the benchmark Nikkei 225 index.

The conglomerate is not the only investor heavily exposed to the high-growth stocks now shunned by investors.

Hedge fund Tiger Global, which competes with "unicorn hunter" Son on deals, saw its flagship fund fall 50% in the first half of the year after it underestimated the impact of surging inflation on markets. ($1 = 134.9000 yen) (Reporting by Sam Nussey; Editing by Edmund Klamann, David Dolan, Kirsten Donovan)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AUTOSTORE HOLDINGS LTD. 3.53% 12.02 Real-time Quote.-65.44%
DIDI GLOBAL INC. -3.32% 1.837 Delayed Quote.-63.11%
NIKKEI 225 -1.83% 25937.21 Real-time Quote.-9.91%
NVIDIA CORPORATION -0.66% 121.39 Delayed Quote.-58.73%
OPENDOOR TECHNOLOGIES INC. -0.96% 3.11 Delayed Quote.-78.71%
SENSETIME GROUP INC. -1.84% 1.6 Delayed Quote.-70.91%
SOFTBANK CORP. -0.89% 1446.5 Delayed Quote.-0.55%
SOFTBANK GROUP CORP. -2.60% 4900 Delayed Quote.-9.83%
09/30Global markets live: Nike, Meta, Barclays, Cineworld, Boeing...
09/30MarketScreener's World Press Review : September 30, ..
09/30Swedish Cloud Group Sinch's Shareholder To Sell Entire 5% Stake
09/29SoftBank to dissolve stake in Swedish cloud computing provider Sinch
09/29SoftBank cuts about 150 staff globally -source
09/29SOFTBANK GROUP CORP. : Ex-dividend day for interim dividend
09/28SoftBank to Buy Outstanding Bonds Worth $1.8 Billion
09/28Japan's Nikkei tracks Wall Street higher as Treasury yields fall
09/28MarketScreener's World Press Review : September 28, ..
09/28Japan's Nikkei ends at near 3-month low on global recession fears
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Analyst Recommendations on SOFTBANK GROUP CORP.
More recommendations
Sales 2023 6 458 B 44 633 M 44 633 M
Net income 2023 751 B 5 191 M 5 191 M
Net Debt 2023 17 829 B 123 B 123 B
P/E ratio 2023 10,8x
Yield 2023 0,90%
Capitalization 7 672 B 53 026 M 53 026 M
EV / Sales 2023 3,95x
EV / Sales 2024 3,72x
Nbr of Employees 59 721
Free-Float 62,1%
Duration : Period :
SoftBank Group Corp. Technical Analysis Chart | MarketScreener
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Technical analysis trends SOFTBANK GROUP CORP.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 17
Last Close Price 4 900,00 JPY
Average target price 7 265,29 JPY
Spread / Average Target 48,3%
EPS Revisions
Managers and Directors
Masayoshi Son Chairman & Executive President
Yoshimitsu Goto CFO, Director & Senior Managing Executive Officer
Tim Mackey Chief Legal Officer & Group Compliance Officer
Masami Iijima Independent Outside Director
Yutaka Matsuo Independent Outside Director
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