Japanese technology company SoftBank Group Corp. is reporting losses of 961.6 billion yen ($9 billion) for the fiscal year through March, thanks to red ink related to its Vision Fund investments including troubled office space-sharing venture WeWork.
SoftBank, founded in 1981, said Monday the drop in share prices around the world from the fallout of the coronavirus pandemic had slammed the value of its sprawling investments.
In this January 16, 2018, photo, Adam Neumann, center, co-founder and CEO of WeWork, attends the opening bell ceremony at Nasdaq in New York (AP Photo/Mark Lennihan)
SoftBank was a major investor in WeWork, which saw its valuation plummet due to concerns about Israeli co-founder Adam Neumann, whose reported lavish living has tarnished the brand. The firm had been pursuing an IPO with a $47 billion valuation, but increased scrutiny of Neumann and the firm’s profitability sank that price by over two-thirds.
Neumann has since been forced out and the IPO shelved.
The future of the office-sharing business model itself is in question as reopening economies try to abide by social-distancing measures against the virus that causes COVID-19.
On top of WeWork’s poor performance, SoftBank suffered damage to the value of Uber and other holdings in its portfolio. The pandemic is adding to uncertainties.
— AP
Help us report truthfully on social media
As a multimedia journalist, my job is to take the quality, fact-based journalism produced by The Times of Israel newsroom and make it accessible across every platform — from Instagram posts to podcasts to short-form videos.
This is how many, especially young people, consume news these days. But misinformation is rampant on social media. Our team at ToI produces accurate, responsible short-form reporting on Israel and the Jewish world.
If you believe in the importance of factual social media journalism, please consider joining our reader support group, The Times of Israel Community. Your financial support is essential to sustain responsible multimedia reporting.
We’re really pleased that you’ve read X Times of Israel articles in the past month.
That’s why we started the Times of Israel - to provide discerning readers like you with must-read coverage of Israel and the Jewish world.
So now we have a request. Unlike other news outlets, we haven’t put up a paywall. But as the journalism we do is costly, we invite readers for whom The Times of Israel has become important to help support our work by joining The Times of Israel Community.
For as little as $6 a month you can help support our quality journalism while enjoying The Times of Israel AD-FREE, as well as accessing exclusive content available only to Times of Israel Community members.
Thank you, David Horovitz, Founding Editor of The Times of Israel
From the Liveblog of
Monday, May 18, 2020
Add ToI as a Preferred Source on Google
