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SoftBank records record $23 billion loss in Vision Fund pain

TokyoSoftbank (SFTBF)The company posted a record quarterly net loss of $23 billion on Monday as the market plunge outpaced tech stocks and the valuation of its sprawling Vision Fund unit fell sharply.

Pain in April-June quarter sees high-profile Vision Fund post record $26 billion loss in May A new occurrence occurred after. , could test an investor's willingness to tolerate even greater losses.

SoftBank founder and CEO Masayoshi Son has already pledged to tighten investment standards and hold on to cash to weather the recession, hinting at Vision Fund job cuts on Monday. and said there was no "sacred realm".

"The world is in chaos," Son said in a post-results briefing about the technology sale. But he admitted that the company had invested in more startups than it should have and that valuations were in "bubbles."

SoftBank also said it had approved a share buyback program worth up to ¥400 billion. This should reassure investors.

Overall, portfolio slide pushed SoftBank to its 3.16 trillion yen ($23.4 billion) net loss in the latest quarter, its biggest loss to date. . In the same period of the previous year, profit was 761.5 billion yen.

Vision Fund units valued at $23.1 billion.

Lower listed investments include robotics firm AutoStore Holdings Ltd and artificial intelligence firm SenseTime Group Inc.

SoftBank values ​​the unlisted assets of the two Vision Funds at ¥1.14 trillion. Analysts say these private asset write-downs are unlikely to reflect the extent of current market weakness.

To raise cash, SoftBank turned to ride-hailing companies Uber Technologies (UBER) and home sales platforms. Opendoor Technologies, exiting companies such as , made a combined profit of $5.6 billion.

SoftBank sold Uber at an average price of $41.47, compared with Friday's closing price of $32.01.

269 second Vision Fund shares were valued at $37.2 billion at the end of June, while acquisition costs were $48.2 billion.

A plummeting initial public offering and market skepticism about loss-making startups have put pressure on SoftBank's key funding sources. SoftBank wants to list chip designer Arm followingsale collapse.NVIDIA (NVDA).

SoftBank wasn't the only victim of the sale of technology shares.

Hedge fund Tiger Global, which is competing with 'unicorn hunter' Song for a deal, said its flagship fund could fall 50% in the first half of this year after underestimating the impact of soaring inflation on the market. fell.

Berkshire Hathaway posted $44 billion in quarterly losses in investments and derivatives, prompting chief executive Warren Buffett to urge investors to ignore fluctuations.

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