The Strategist

Net worth of SoftBank’s head drops by $5 bln over three months


11/06/2019 - 10:57



The net worth of SoftBank’s head Masayoshi Son has decreased by more than $ 5 billion since mid-summer. This is another sign that the Japanese billionaire’s business has not been doing very well in recent months: the collapse of WeWork and other unsuccessful bets have undermined the investor confidence.



Nobuyuki Hayashi via flickr
Nobuyuki Hayashi via flickr
At the end of July, SoftBank proudly announced that it was creating a new investment fund and was planning to raise a record $ 108 billion. Forbes then estimated the net worth of head of the company Masayoshi Son at $ 24.5 billion. Since then, according to Forbes, it has decreased by more than $ 5 billion. As of November 5, Son’s capital was estimated at $ 19.2 billion, follows from the Forbes Real-Time rating.

For Son, this is another consequence of the “rebound of his strategy of aggressively supporting technology innovators,” as Bloomberg called it. One of Son’s most significant failures at the moment is WeWork’s US coworking network, which, according to the Financial Times, was the billionaire’s main investment bet. In just a few weeks, the company abandoned the planned IPO and broke up with the founder and CEO Adam Neumann. The firm’s investor rating fell from $ 47 billion to $ 8 billion. SoftBank agreed to spend another $ 3 billion to buy back control in WeWork after the company’s collapse.

Not the best results are shown by another notable investment of the group. On November 5, Uber reported an increase in quarterly losses of almost 20% year on year, to $ 1.16 billion. This is the third worst quarterly result of the company since 2017, when it began to disclose financial figures, notes The Wall Street Journal. The record was set in the previous, second quarter of this year - $ 5.2 billion loss. SoftBank is still at a loss of $ 2 billion from investments in the project: the taxi aggregator’s quotes are 31% cheaper than the IPO price, FT wrote.

source: forbes.com, ft.com




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