SoftBank Group profit plunges; Son admits 'poor' decisions

SoftBank Posts Record Loss on Startup Bets

While Uber's struggling inventory will nearly certainly be a element within the losses, the corporate confirmed that its WeWork involvement amounted to $8.2 billion of the figure, the finest debt in SoftBank's historical past.

Aside from that, the extent of loss SoftBank had to grapple with over the third quarter of the year raised alarming bell over Son's strategy to back loss-making start-ups such as Uber Technologies, Lyft Inc. alongside WeWork once owned by a USA real estate major The We Company.

"My investment judgment was poor in many ways and I am reflecting deeply on that", SoftBank Chief Executive Officer Masayoshi Son said during a news conference after the earnings report. The Japanese conglomerate lost at least $4.7 billion by investing in WeWork, and combined with losses at Vision Fund I and Delta Fund, it plunged to an operating loss of $6.5 billion last quarter. Son said he was blinded by Neumann's positive attributes, including his design of WeWork's offices.

The company investment into WeWork yielded around $3.4 billion-large writedown (374.7 billion yen), which came only two weeks after the firm took control over 80% of WeWork. The company found itself in the red even though its Japan-based telecommunications business, SoftBank Corp., beat analyst estimates by reporting a 9% increase in profit. He added that WeWork could generate $1 billion in annual profit in a few years and that the business in Japan is already making money.

The telecom unit was a rare bright spot in SoftBank's earnings this week, reporting a 9% increase in second-quarter operating profit.

"The perception is that SoftBank is being dragged down into the quagmire of WeWork", he said.

And some analysts said the results were "not so desperately bad".

NHL Global Series heading to Finland, Czech Republic in 2020
I think it's great the League continues to grow the game and bring hockey to different countries all over the world". Columbus has given up 11 power-play goals, killing 77.6% of opponent chances.

Son had pushed to back the We Firm thru SoftBank's $100 billion Imaginative and prescient Fund since 2017, which he now says must be more cautious intriguing forward. "If SoftBank is to go on as an investment company, it needs to do a better job explaining its own governance to investors".

WeWork's spectacular flame-out this year has sparked questions about Son's judgment in backing unconventional tech founders such as WeWork's Adam Neumann. As SoftBank's Marcelo Claure takes over as chairman of WeWork, the startup will get rid of unprofitable businesses, cut expenses in half and halt new building developments.

"We don't need to do anything tricky or invent anything", he said.

SoftBank has backed ByteDance Inc., the most valuable startup in the world at $75 billion, and the second-most valuable, China ride-hailing giant Didi Chuxing. He said that his returns are about twice the average for venture capital.

WeWork does seem to be executing on some of Son's plans.

Another important piece of context is that though the value of the Vision Fund's startup stakes dropped in the second quarter, they're collectively worth more than what SoftBank had originally paid for them. "I have major regrets particularly on [WeWork's] governance problem", Mr Son conceded on Wednesday.

Related News:

  • Turkish and Russian presidents discuss northeast Syria

    Turkish and Russian presidents discuss northeast Syria

    SANA said Saturday's clashes included heavy machine gun fire and occurred in the village of Um Shaifa near the town of Ras al-Ayn. Erdogan because his authoritarianism must not be rewarded or dignified with a visit to the White House", Larigakis wrote.
    Alabama Fan's Reaction To LSU Touchdown Is Going Viral

    Alabama Fan's Reaction To LSU Touchdown Is Going Viral

    No. 2 LSU held on for a 46-41 win over No. 3 Alabama on Saturday thanks to a sparkling performance by the Tigers quarterback. He's headed to friendlier turf for Saturday's big game . "Everybody wants to play their best game because it's 1 vs. 2".
    'Liverpool are the strongest team in the world'

    'Liverpool are the strongest team in the world'

    Revitalised since Klopp took charge four years ago, Liverpool have not lost a home game in the Premier League since April 2017. In the 13 meetings between the pair, the German has won eight, whilst the Spaniard only five.
  • Sessions makes 2020 Senate run official

    Sessions makes 2020 Senate run official

    His campaign nearly immediately released his first campaign ad in which he pledged his support to the Trump agenda. "I still am. And Alabama's other senator, Richard Shelby, has talked about how he would welcome Sessions back into the chamber.
    Gov. Bevin officially requests recanvass in general election

    Gov. Bevin officially requests recanvass in general election

    After Kentucky's Democratic gubernatorial candidate Andy Beshear pulled off an upset victory over Trump-endorsed Gov. Bevin picked fights with and offended Kentucky teachers over pension reform, resulting in a major voter backlash.
    De Minaur, Sinner set for Next Gen title match

    De Minaur, Sinner set for Next Gen title match

    Sinner saved eight of nine break points faced. " He played an unbelievable season ", Sinner said of his opponent. Alex de Minaur and Jannik Sinner will compete in Saturday's title match of the 2019 Next Gen ATP Finals .
  • Call Of Duty: Modern Warfare To Get Free Maps, Game Mode Soon

    Call Of Duty: Modern Warfare To Get Free Maps, Game Mode Soon

    More details on tomorrow's maps and modes will be shared in official COD patch notes , which will go live after the big update. Details on the new Battle Pass are sketchy but it is expected to involve efforts to keep loot boxes far away from the series.
    Bayern Munich give Flick coaching job 'until further notice'

    Bayern Munich give Flick coaching job 'until further notice'

    It's Bayern's first Bundesliga game since head coach Niko Kovac departed the club. I could not answer and by politeness I called him back.

    Chase Young borrowed money for girlfriend’s flight to Rose Bowl

    Young, a Maryland native, is considered a potential No. 1 pick in the upcoming 2020 National Football League draft. It is a school's decision to play, or not play, an athlete, according to the NCAA.
  • Disney+ is coming to Europe on March 31

    Disney+ is coming to Europe on March 31

    Disney + is the ultimate streaming destination for entertainment from Disney , Pixar, Marvel, Star Wars , and National Geographic. Contributing to this was Disney's direct-to-consumer and worldwide unit, which includes its streaming business.
    Cyclone Bulbul to make landfall tonight, Kolkata airport suspends flight ops

    Cyclone Bulbul to make landfall tonight, Kolkata airport suspends flight ops

    With winds about 130-140 kph, Bulbul is now the equivalent of a category one or two hurricane in the Atlantic, it said. High winds uprooted trees in coastal blocks of the three districts as well while also damaging houses in some areas.
    Special deals and freebies for military members in honor of Veterans Day

    Special deals and freebies for military members in honor of Veterans Day

    Dunkin' Donuts - Veterans and active duty military may receive a free doughnut of their choice with no purchase necessary. Veterans, active duty military and reservists will receive a free appetizer or dessert from a select Veterans Day menu.


Most liked

Iraqi PM concedes ‘mistakes made’ as protesters pushed back in Baghdad
More than 260 people have been killed and thousands wounded by security forces since the demonstrations broke out in October. Iraq, exhausted by decades of conflict and sanctions, had enjoyed relative calm after Islamic State was defeated in 2017.

Pixel 4's astrophotography mode comes to older Pixels with Google Camera 7.2
Starting on Sunday, November 24th, it will be $200 off, priced at $599 for the 64GB version and $699 for the 128GB version. For $699, even the smaller Pixel's battery may be bearable compared to a $799 price point.

Constance Wu is mum so far on 'Fresh Off the Boat' cancellation
It was truly a special experience and hopefully will forever be a reminder of all the stories out there that deserve to be told. EST Friday is averaging 3.1 million weekly viewers for the season to date, making it No. 69 out of about 80 network programs.

Fresh Clashes Erupt in Baghdad Despite Sistani's Call for Calm
Also on Friday, protester Amir Shami said security forces tore down tents at an protest sit-in in the holy city of Karbala. Gunfire was used against demonstrators in Basra, the main source of Iraq's oil wealth, who had staged a days-long sit-in.

Official says US knows little of Baghdadi successor
The Turkish president, Recep Tayyip Erdoğan, says Turkey has captured the wife, sister and brother-in-law of Abu Bakr al-Baghdadi. The group said a successor to Baghdadi, identified as Abu Ibrahim al-Hashemi al-Quraishi, had been appointed.

Bangladesh on alert as cyclone approaches Bay of Bengal
The fishing operations have been totally suspended over Odisha-West Bengal coasts till November 10. Kolkata Airport also suspended its operations from 6 p.m. (7:30 a.m.

Next year's Met Gala theme revealed
The exhibition will be in collaboration with Louis Vuitton , with Nicolas Ghesquière as a co-chair for the event. Though Streep has never attended a Met Gala , she does have several ties to the event.

Instagram will test hiding likes in the United States starting next week
But the changes could also be a blow to smaller influencers who relied on large numbers of likes to attract brand deals. Instagram CEO Adam Mosseri said Friday that the photo sharing app will start hiding likes for some US users next week.

Helen Mirren confused with Keanu Reeves' girlfriend Alexandra Grant in photos
Although they are both tight-lipped their alleged romance, they seemed to confirm their relationship on the red carpet last week. She spoke highly of Keanu whom she knows personally and said they are lucky to have each other.

Downpours bring flooding misery as election campaigning continues in the rain
By 9pm on Thursday, the Environment Agency has issued 98 flood warnings, mainly in the Yorkshire region, and 116 flood alerts. A total of 116 flood warnings remain in place, mostly in Yorkshire, a Met Office spokesman said.

Mick Mulvaney subpoenaed in impeachment inquiry
The Senate is also now looking ahead, as the likelihood of impeachment grows, with Republicans there defending the President. Unlike many other news sites, we have not put up a paywall. "There should not be impeachment hearings", Trump said.

Death Stranding PC will release on both Steam and Epic Games Store
Hence, we don't really see a reason why you need to rush to pre-order the game right now but of course, to each of their own. Contrary to our predictions , Death Stranding will release simultaneously on Steam and the Epic Games Store in Summer 2020.

Gap CEO steps down amid slumping sales - 47abc
Like many mall-based clothing chains, Gap is struggling to turn itself around as shoppers go online or to discounters such as T.J. Gap also now expects full-year adjusted earnings per share of $1.70 to $1.75, down from its previous forecast of $2.05 to $2.15.

Global billionaire wealth falls for 1st time in 3 years
Despite the decline in 2018, billionaires' assets are still Dollars 2.2 trillion or a suitable third higher than five years ago. Tech industry billionaires saw a 3.4% wealth increase in 2018, the only industry where billionaire wealth increased.

First lot of pilgrims led by Manmohan Singh reaches Kartarpur
Three of the four wars between India and Pakistan since their independence from Britain in 1947 have been fought over Kashmir. Some residents in Kartarpur complained to AFP that the government had cheated them out of land to expand the complex.