SoftBank reports $5.2 billion quarterly loss as WeWork bankruptcy takes a toll

SoftBank reports $5.2 billion quarterly loss as WeWork bankruptcy takes a toll

SoftBank Group reported a quarterly loss of $5.2 billion, marking the fourth consecutive quarter of losses. The Japanese giant faced setbacks due to the bankruptcy of WeWork, once a high-performing investment. This loss highlights the volatility of Founder Masayoshi Son’s approach of making big bets on risky start-ups. However, SoftBank’s Chief Financial Officer, Yoshimitsu Goto, expressed optimism, stating that the company had hit rock bottom and was making progress towards profitability. SoftBank is now focusing on artificial intelligence (AI) and selectively restarting investments. Its Vision Fund, an investment unit, reported a profit of 21.4 billion yen in the latest quarter, emphasizing SoftBank’s commitment to future growth and AI. Despite the losses from WeWork, SoftBank’s interest in providing credit support for the company resulted in increased liabilities. SoftBank believes that chip designer Arm, which recently went public and generated a capital surplus of $4.65 billion, will be the new driver of value for the company. SoftBank’s strategy of betting on AI and innovative technologies reflects its intention to adapt to the changing market landscape.

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TIS Staff

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