Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Vision Fund
Global investment

Why does Vision Fund and SoftBank have losses?

12.12.2020
2 min read

How the collapse of WeWork and Uber affects the SoftBank Vision Fund

Vision Fund is a large division of SoftBank from Japan. The organization recently suffered a $5 billion loss, which was a real blow to the corporation as a whole. The reason for the losses is the difficulties of companies in which the fund invested large amounts. Uber shares collapsed and WeWork stock exchange was cancelled.
WeWork is one of the largest companies providing co-coordinating services. Vision Fund is investing in its development, and the termination of the IPO process has affected the fund’s position. But not only the fall of WeWork and Uber has affected SoftBank. A number of large partner companies have also reduced their profits. As a result, Vision Fund’s operating losses were fixed at $3.44 billion. The total profit of SoftBank decreased by about $4 billion and made $9.4 billion.
The losing streak for SoftBank and its head Masayoshi Son began after the corporation began to actively invest in start-ups around the world. Before that, the organization had invested in large companies such as Alibaba. This strategy allowed it to develop and increase capital, but after focusing on many projects, problems arose. The recent situation with WeWork and Uber caused fluctuations on the stock exchange, as a result of which SoftBank shares lost about 30% of their price, although at the beginning of the year they were at the peak of value.
Corporation head Masayoshi Son expressed concern over such results, not understanding why such successful companies are losing their positions. In his opinion, Uber service and WeWork co-coordering have all chances to develop and increase profits, but in the future for 10 years.

Vision Fund

The management of SoftBank and its Vision Fund decided to change the strategy. Now they plan to concentrate on investing in artificial intelligence companies, because this area is promising and interesting not only for Sonya himself, but also for consumers.
The experts conducted an analysis and found out that in order for WeWork to stop being unprofitable and get to zero, it takes from $24 billion or more. Only with this assessment SoftBank’s investments can pay off.
Vision Fund’s investment in the coworking network was $1.5 billion, plus it invested about $1.6 billion in the development of branches in other countries. For a long time, the company was considered one of the most successful startups, but after the financial analysis for the IPO was released, it became known about the loss of $ 904 million, with a profit of $1.54 billion.

Tags: Global investment
0
Previous Post Poloniex cryptocurrency exchange launches its own IEO-platform Next Post The Ministry of Finance and the Central Bank announced the withdrawal of the country's main regulator from Sberbank capital

You Might Also Like

Pinduoduo
Global investment
Chinese marketplace Pinduoduo launches online store in the U.S.
27.11.2022
Xiaomi Corporation
Global investment
Xiaomi Corporation invested $400 million in Xpeng Motors
23.09.2020
Foreign direct investment
Global investment
Foreign direct investment in China increases
09.10.2022
E*TRADE Financial
Global investment
Large holding company Morgan Stanley bought E*TRADE Financial Corp for $13 billion
12.11.2020
PGNiG
Global investment
Polish corporation PGNiG invests in alternative energy industry
10.02.2021
Binance plans to buy banks
Global investment
Buying banks: cryptocurrency exchange Binance wants to expand its capabilities
14.01.2023

Recent Posts

  • 1Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 2Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 3Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023
  • 4Michael Steinhardt
    Michael Steinhardt: the story of a prominent American investor
    25.01.2023
  • 5Cessna
    The Cessna aircraft company: how it all began
    24.01.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Ruble exchange rate fluctuation: how to preserve savings in an unstable national currency

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023
Tom Ford brand
Estee Lauder made a deal to buy the fashion brand Tom Ford
27.01.2023
Golden Visa
The Golden Visa program has brought Portugal more than 6 billion euros during its existence
26.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Ruble exchange rate fluctuation: how to preserve savings in an unstable national currency
  • How Norwegian oil helped the country become an ideal place to live
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics