SoftBank's Vision Fund Could Writedown As Much As $7 Billion in Loses


SoftBank’s shares slid 2.7% after reports it will writedown at least $5 billion to its Vision Fund for unicorn losses.

SoftBank is planning to take a writedown to its Vision Fund of at least $5 billion to reflect the catastrophic dip in its biggest holdings, including WeWork and Uber Technologies Inc.

SoftBank’s shares slid 2.7% (lowest since January) when the parent of the $100 billion Vision Fund unveiled its plan for the writedowns when SoftBank announces second-quarter earnings on Nov. 6.

Uber and WeWork, once among the brightest stars for SoftBank, now are among its worst performers. Several large mis-steps call into question billionaire Masayoshi Son’s investment credibility. Public markets have not been kind to Uber, down 25% since its May IPO. Between June 30 and Sept. 30, the value of SoftBank’s 13% stake in Uber decreased by about $3.5 billion, according to Bloomberg data.

The writedown could reach as much as $7 billion, but the amount has not yet been finalized and could still change.

Mizuho Securities analyst Yusuke Hori has estimated declines in portfolio companies could force SoftBank to book as much as a 500 billion yen ($4.6 billion) valuation loss.

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Economics, Finance and Investing