Japanese Softbank warns of record loss

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Completion of published forecasts for the financial year

Japanese Softbank warns of record loss. Photo: realdeals.eu.com

Softbank, a Japanese corporation, warned that the company’s operating losses reached $ 12.5 billion for the fiscal year ended March 31. The loss was associated with the Vision Fund, which was greatly affected by the coronovirus epidemic.

The loss was mainly due to risky financing at WeWork, a startup for startups, OneWeb, a satellite internet launch company and Oyo Hotel Reservation Service. The latter received about $ 1.5 billion from SoftBank, but the startup’s business model crashed after the trip was stopped due to COVID-19. OneWeb filed for bankruptcy last month.

It is noted that even before the epidemic, the Vision Fund suffered an operating loss of 797.8 billion yen due to financial losses by WeWork and Uber.

It is reported that the holding of the stock on the Tokyo Stock Exchange closed at 5.2% on April 14, falling 3.4% on Monday before the publication of the financial forecast.

On March 19, SoftBank shares fell to a four-year low of 2,687 yen ($ 25). The sale of securities triggered a series of emergency meetings of the Softbank Group board, at which CEO Masayoshi Son considered an option to privatize the company, but it was ultimately decided to sell the corporation’s assets for $ 41 billion.

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It was previously reported that SoftBank Group will invest $ 100 million in the British startup Behavocs, which uses artificial intelligence to monitor employee behavior in financial companies. In particular, AI allows Beehawks to detect malicious actions by employees, such as unauthorized transactions or bribes.

Read: To be or appear to be: what banks have to do so that customers don’t visit Amazon

According to the material ft.com


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