Japanese investment behemoth SoftBank has disclosed a staggering loss of $6.2 billion (approximately 5 billion pounds), as it grapples with the fallout from WeWork’s downfall.
During the quarter ending in September, the firm’s Vision Funds recorded a pre-tax loss of 258.9 billion yen (about 1.4 billion pounds), in anticipation of the impending bankruptcy of the co-working space titan.
WeWork’s bankruptcy filing on Monday marked a costly misstep for SoftBank’s founder, Masayoshi Son, who had made substantial investments in the once-flourishing startup.
SoftBank Group’s total losses for the quarter amounted to 931 billion yen (roughly 5 billion pounds), a stark contrast to the 3 trillion yen profit from the same period last year, which was buoyed by the sale of Alibaba shares, China’s e-commerce powerhouse.
SoftBank Group refrained from releasing any annual earnings projections.
