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Softbank’s Vision Fund Set for $16.5 billion Loss 

Published 04/14/2020, 01:22 AM
Updated 04/14/2020, 01:23 AM
© Reuters.
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By Gina Lee

Investing.com - Softbank (T:9984) is expecting a $16.5 billion loss for its Vision Fund, it said in a statement on Monday.

The Japanese conglomerate blamed the losses for the $100-billion fund on “the deteriorating market environment” caused by the COVID-19 pandemic. The expected loss is expected to lead to a group-wide loss for the first time in 15 years.

Should the Saudi-Arabia backed fund incur losses for the third straight quarter, Softbank faces a staggering annual operating loss of $12.5 billion.

The company is facing a financial squeeze after it cancelled a $3 billion investment for real estate startup WeWork in mid-March. Two independent WeWork directors announced last week that they are suing Softbank over the soured deal.

Softbank shares fell more than 3% following the news But they clawed back the losses on Tuesday, gaining 4.88% by 1:38 AM ET (6:38 AM GMT).

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