SoftBank profits almost wiped out by Vision Fund losses
Japanese technology conglomerate SoftBank Group has seen its quarterly profit being almost wiped out for a second straight quarter by losses at its $100 billion Vision Fund focused on tech companies like Uber and WeWork.
 
The poor results have dented investor confidence in founder Masayoshi Son's big bets on new start-ups.
 
Addressing a news conference, Son said SoftBank had turned a corner while he also acknowledged the anxiety caused to investors and also said he has been forced to scale back a second Vision Fund.
 
"We have caused a lot of concern," Son said, adding he needs to "give everyone a piece of mind" to secure outside funds for Vision Fund 2.
 
The tech conglomerate on Wednesday reported operating income of 2.59 billion yen ($23.6 million) for the three months ended in December, a plunge of 99% compared to the same period a year earlier.
 
SoftBank founder and CEO Masayoshi Son's closely watched $100 billion Vision Fund was the biggest driver of those losses. The Vision Fund and a related fund reported an operating loss of 225 billion yen ($2 billion) for the quarter, blaming unrealized losses in WeWork and Uber for the hit.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    COMMENTS

    sanjeevnandaofficial

    2 weeks ago

    Mashiyosi Son will be mourned a martyr. The man wanted to invest in innovative ideas, but he has no judge of human caliber (as in the case with Adam Neuman). I hope he is able to pick himself up by the bootstaps and have a clear vision going forward.
    ~ Sanjeev Nanda, Financial Advisor

    US FTC to probe past acquisitions by Facebook, Google, Apple, Amazon, Microsoft
    Amid growing calls for breaking down large technology companies, the US Federal Trade Commission is set to examine past acquisitions by five tech giants -- Alphabet Inc. (including Google), Amazon.com, Inc., Apple Inc., Facebook, Inc., and Microsoft Corp.
     
    The FTC on Tuesday said it issued special orders to these five companies, requiring them to provide information about prior acquisitions not reported to the antitrust agencies under the Hart-Scott-Rodino (HSR) Act.
     
    The orders require to provide information and documents on the terms, scope, structure, and purpose of transactions that each company consummated between January 1, 2010 and December 31, 2019.
     
    The Commission said it wanted to conduct wide-ranging studies of these acquisitions that do not have a specific law enforcement purpose.
     
    The orders will help the FTC deepen its understanding of large technology firms' acquisition activity, including how these firms report their transactions to the federal antitrust agencies, and whether large tech companies are making potentially anticompetitive acquisitions of nascent or potential competitors that fall below HSR filing thresholds and therefore do not need to be reported to the antitrust agencies.
     
    "Digital technology companies are a big part of the economy and our daily lives," said FTC Chairman Joe Simons.
     
    "This initiative will enable the Commission to take a closer look at acquisitions in this important sector, and also to evaluate whether the federal agencies are getting adequate notice of transactions that might harm competition. This will help us continue to keep tech markets open and competitive, for the benefit of consumers," Simons added.
     
    The special orders require each recipient to identify acquisitions that were not reported to the FTC and the U.S. Department of Justice under the HSR Act, and to provide information similar to that requested on the HSR notification and report form.
     
    The orders also require companies to provide information and documents on their corporate acquisition strategies, voting and board appointment agreements, agreements to hire key personnel from other companies, and post-employment covenants not to compete.
     
    The orders also ask for information related to post-acquisition product development and pricing, including whether and how acquired assets were integrated and how acquired data has been treated.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User

    Sahara Group deposits Rs 15,448 cr for repaying investors
    The Sahara Group, which allegedly duped its investors, has so far submitted Rs 15,448.67 crore into the 'SEBI-Sahara Refund' account, according to the Ministry of Finance.
     
    In a written reply to the Lok Sabha, Minister of State for Finance, Anurag Thakur said that a cheque of Rs 41.59 crore in respect of a property situated at Vellore was produced before the Supreme Court last month and has been deposited at the bank, but the amount has not yet been realised.
     
    SEBI has said that two Sahara Group companies -- Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation Ltd (SHICL) -- had raised money aggregating to Rs 19,400.87 crore and Rs 6,380.50 crore respectively from around 3.07 crore subscribers or investors by issuing optionally fully convertible debentures (OFCD) without filing offer documents with SEBI and in violation of its regulations.
     
    "As per directions of the Supreme Court order, Sahara Group has deposited an amount of Rs 15,448.67 crore to 'SEBI-Sahara Refund' account as on 01.02.2020. Further, a cheque of Rs 41.59 crore in respect of a property situated at Vellore was produced before the Supreme Court on 24.01.2020, where the Supreme Court directed that the same shall be accepted by SEBI 'without prejudice'. The said cheque has been presented to the bank for depositing to 'SEBI-Sahara Refund' account,but has not yet been realised as on date," he said.
     
    Thakur, who is also the Minister of State for Corporate Affairs, said market regulator SEBI has received 19,560 applications for refund, involving 53,361 original bond certificates or pass books for an aggregate principal amount of Rs 81.30 crore.
     
    SEBI made refunds with respect to 14,146 applications involving 39,499 original bond certificates or pass books for an aggregate amount of Rs 109.86 crore, including the principal amounting to Rs 58.52 crore and interest of Rs 51.34 crore.
     
    "The refund to investors is subject to verification of their applications and approval of Justice (Retd) B.N. Agarwal in terms of the order of the Supreme Court," Thakur said in his reply.
     
    Last month the top court exempted the Sahara Group chief Subrata Roy and two other Directors from personal appearance till "further orders" in a case pertaining to the alleged failure in depositing Rs 25,700 crore in the SEBI-Sahara account.
     
    In January last year, the apex court had directed Roy and other two directors, Ravi Shankar Dubey and Ashok Roy Choudhary, to make personal appearance. It had observed that Sahara's payback process did not look promising, as it did not comply with the direction to deposit Rs 25,700 crore.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone