The $100 billion fund which is based on the vision of CEO Masayoshi Son may drag the entire group to its first annual loss in 15 years, SoftBank said.
Japanese conglomerate SoftBank Group expects a $16.73 billion dip in its Vision Fund after coronavirus-led lockdown took a toll on many of its top bets, including Indian budget hotel chain OYO.
The $100-billion fund which is based on the vision of CEO Masayoshi Son may drag the entire group to its first annual loss in 15 years, SoftBank said.
SoftBank’s finances are being squeezed due to the tumbling valuations of most of its tech startups “deteriorating market environment” as industries are hammered by the coronavirus crisis.
The dismal situation of the Saudi Arabian-backed fund may incur a $12.5 billion annual operating loss for the group, SoftBank said in a statement on Monday.
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The coronavirus pandemic has undermined predictions by Son, who just two months ago said "the tide is turning" and pointed to recovery at WeWork, forcing him into a major sell-down of core assets to raise cash.
Another personal blow for Son came in the form of OYO, which was touted by him to become the biggest hotel chain in the world.
Nine months later, the Ritesh Agarwal-backed company is staring at an existential crisis as the firm was forced to freeze operations around the world and has been furloughing thousands of employees. Travel has come to a halt, leaving hotel rooms empty and losses rising for the nascent company.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
