SoftBank’s (OTCPK:SFTBY) first quarterly loss in 14 years is putting a spotlight on founder Masayoshi Son’s high-risk approach of investing in cash-burning startups, as he is attempts to raise a second giant investment fund.
Recording an operating loss of ¥704B ($6.46B) in the third quarter, SoftBank marked down the total value of WeWork’s (WE) equity to $7.8B, a major writedown given the office-sharing company was valued at $47B before its attempt to go public backfired.
While SoftBank (OTCPK:SFTBY) hasn’t calculated the effect of WeWork’s $9.5B rescue package on its earnings, the Japanese group said it suffered a $8.9B hit at its Vision Fund.
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