There isn’t any respite for SoftBank Group within the ongoing world tech meltdown because the Japanese funding large reported a large round $5.9 billion web loss in its third quarter that ended December 31.
SoftBank stated it misplaced round $5.5 billion in its signature Imaginative and prescient Funds alone within the October-December interval, “reflecting declines within the share costs of a variety of portfolio firms”.
The funding large had misplaced $10 billion within the earlier quarter (July-September 2022).
In response to the corporate, the honest worth of its present late-stage portfolio is now greater than $37 billion.
On its earnings name with analysts, SoftBank stated it is within the “defence mode”.
For the primary time in many years, Masayoshi Son, founder and chief government of SoftBank Group, skipped the analysts’ name.
In response to The Monetary Occasions, at December-end, SoftBank stated the honest worth of the $100 billion Imaginative and prescient Fund I used to be down 4.4 per cent from a yr earlier.
The valuation for investments in Imaginative and prescient Fund II was down 6.2 per cent.
SoftBank stated it is taking a “cautious method” to investing within the blockchain and crypto sector.
Battered by heavy losses, SoftBank in September final yr introduced to put off at the least 30 per cent of workers at its loss-making Imaginative and prescient Fund.
In August, SoftBank Group revealed plans to promote almost 242 million American depository receipts (ADRs) of Chinese language behemoth Alibaba, which can assist it achieve 4.6 trillion yen ($34 billion) in pre-tax achieve from the sale.
Funding financial institution Jefferies had predicted that SoftBank would want “$40-45 billion of money this yr” if it had been to maintain.
Son had warned unicorns and startups to arrange for a harsh and longer funding winter.