on Wednesday, its stock has continued to gain momentum recently, in large part thanks to the approval of a merger between SoftBank-owned Sprint and T-Mobile.
- SoftBank’s Vision Fund took a $2 billion loss last quarter after writing down investments in WeWork and Uber, slashing the company’s operating income by 99%—from nearly $4 billion to less than $25 million, compared to a year earlier.
- SoftBank stock was down slightly on the news Wednesday, falling by 0.6% as founder Masayoshi Son said that the fund’s recent poor performance was spooking investors and causing big losses.
- Son has reportedly scaled back his ambitions for a second Vision Fund, following SoftBank’s disastrous bet on WeWork and pressure from activist investor Paul Singer’s hedge fund, Elliott Management.
- The company’s latest earnings release comes amid ongoing discussions with activist fund Elliott Management, which amassed a $2.5 billion stake in the Japanese conglomerate and is pushing for stock buybacks, improved corporate governance and more transparency on the Vision Fund’s investments.
Crucial statistics: SoftBank stock is still up nearly 20% so far this year. The Japanese conglomerate currently has a market cap of $110 billion, up from $90 billion at the start of 2020. SoftBank founder and CEO Masayoshi Son is Japan’s second richest person, with a net worth of $24.2 billion, according to Forbes’ estimates. His fortune rose by $2.3 billion alone on Tuesday, when T-Mobile and Sprint won approval for their $26 billion merger.
Article credit; Forbes