SoftBank reported a near-total wipeout in quarterly revenue Wednesday after the Japanese technology investor was injured for a second straight quarter by losses at its $100 billion Vision Fund.
The result is prone to deepen concern about founder Masayoshi Son’s skills to secure money for a second Vision Fund and give more supplies to Elliott Management, which has lately appeared as a prominent shareholder.
The numbers are the latest reminder of the inherent risk in Son’s strategy of betting big on untested startups.
The Vision Fund revealed an operating loss of 225 billion yen for October-December in comparison with 176 billion yen profit in the same interval a year ago.
He pointed to a surge in prices at the Vision Fund’s handful of listed investments and information overnight that a U.S. federal judge had denied an antitrust challenge to the intended merger of SoftBank’s Sprint and T-Mobile.
Group profit hit 2.6 billion yen for the quarter against 438 billion yen a year earlier. The determine included a 332 billion yen dilution gain related to the secondary listing of portfolio agency Alibaba.
The outcome compared with the 345 billion yen average of three analyst estimations compiled by Refinitiv. Analysts have said it’s challenging to judge SoftBank’s performance attributable to a lack of divulgence around Vision Fund’s internal valuations.
The Vision Fund, which is supported by Saudi Arabia and has single-handedly transformed the face of tech investing, said it had put in $74.6 billion in 88 firms as of December-end.