SoftBank Group reports massive $5.9 billion net loss amid global tech meltdown

There is no respite for it Softbank Group in the ongoing global tech meltdown as the Japanese investment giant on Tuesday reported a huge net loss of about $5.9 billion in its third quarter ended December 31.

SoftBank said it lost about $5.5 billion in its signature Vision Funds in the October-December period alone, “due to declines in the stock prices of a broad range of portfolio companies.”

The investment giant had lost $10 billion in the previous quarter (July-September 2022).

According to the company, the fair value of its current late-stage portfolio is now more than $37 billion.

During its earnings call with analysts, SoftBank said it is in “defense mode.”

For the first time in decades, Masayoshi Son, founder and CEO of SoftBank Group, skipped the analyst call.

According to The Financial TimesAt the end of December, SoftBank said the fair value of the $100 billion Vision Fund I was 4.4 percent lower than a year earlier.

The valuation for investments in Vision Fund II fell by 6.2 percent.

SoftBank said it is taking a “cautious approach” when investing in the blockchain and crypto sector.

Beset by heavy losses, SoftBank announced in September last year that it would lay off at least 30 percent of its employees at the loss-making Vision Fund.

In August, SoftBank Group unveiled plans to sell nearly 242 million U.S. depositary receipts (ADRs) of Chinese behemoth Alibaba, which will see it reap 4.6 trillion yen ($34 billion) in pre-tax profits from the sale.

Investment bank Jefferies had predicted that SoftBank would need “$40-45 billion in cash this year” to survive.

Son had warned unicorns and startups to prepare for a harsh and extended funding winter.

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