SoftBank saw $14.3 billion in accumulated losses as a result of its investment in the recently collapsed WeWork. The post WeWork Investment Cost SoftBank $14.3B in Total Accumulated Losses appeared first on Tokenist.
WeWork Files for Bankruptcy
The bankruptcy market is one of the most remarkable corporate collapses in recent US history. One of the factors that led WeWork to its demise was the rapid U-turn in the post-pandemic era, as numerous companies renting WeWork’s offices abruptly ended their leases. Furthermore, the following economic downturn forced even more companies to do the same.
In fact, SoftBank is a majority stakeholder in WeWork, with its cumulative losses in the collapsed firm hitting $14.3 billion. On Thursday, SoftBank reported a net loss of $6.2 billion in the quarter ended September 30, marking the conglomerate’s fourth consecutive quarter of negative profitability.
SoftBank Enters ‘Investing Mode’
During the six months through September, SoftBank said it posted $1.6 billion in losses related to investment and financial aid for WeWork. And although its breakdown was a big blow for Masayoshi Son’s SoftBank, the Tokyo-based investment titan remains focused on future opportunities.
“We have entered an investing mode. We have plenty of cash so we are ready for big positions.”
– SoftBank’s CFO Yoshimitsu Goto said
The holding company’s net asset value grew to $109 billion at the end of September, up from $103 billion at the end of June. The boost comes in part due to a weaker yen, Goto added.
When do you think SoftBank will manage to return to profitability? Let us know in the comments below.