- SoftBank Group recorded an eye-watering quarterly loss of $US6.5 billion early Wednesday, spurred by some of its biggest tech investments like Uber and WeWork.
- The Japanese investment giant last month spent over $US10 billion bailing out WeWork after it failed to go public.
- Read all of Business Insider’s WeWork coverage here.
SoftBank Group recorded a massive loss of $US6.5 billion in the third quarter, spurred by some of its biggest tech bets like Uber and WeWork.
The Japanese investment firm reported its first quarterly operating loss in 14 years, saying it plunged by 704 billion yen, or $US6.46 billion, in the July-to-September period.
It was operating on a profit of 706 billion yen, or $US6.47 billion in the same quarter in 2018.
Wednesday’s loss was extreme. A chart posted to Twitter by Bloomberg’s David Ingles shows just how steep the company’s losses were compared with quarters before, when it booked profit after profit.
Softbank just reported results. It was a "WTH" type of operating loss. At 700B, loss was way bigger than even the most bearish estimate. pic.twitter.com/YM0loUO58n
— David Ingles (@DavidInglesTV) November 6, 2019
Its firebrand founder, Masayoshi Son, had taken huge financial risks by investing in startups like Uber and WeWork, the latter of which received more than $US10 billion in bailout money last month after failing to go public.
On Monday, the Financial Times reported that the Japanese magnate had told his colleagues he had “created a monster” in WeWork, whose cofounder Adam Neumann stepped down as CEO in September before the company shelved its initial public offering indefinitely.
Publicly, Son has said little about WeWork’s missteps, though he has said he is “embarrassed” in general by some of SoftBank’s decisions.
Uber has lost more than a quarter of its value since going public. Other listed SoftBank investments, including Slack and Guardant Health, slid in value as well over the quarter, according to Reuters.
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