- SoftBank Group recorded an eye-watering quarterly loss of $6.5 billion early Wednesday, spurred by some of it biggest tech invstments like Uber and WeWork.
- The Japanese investment giant last month spent over $10 billion bailing out WeWork after its failed IPO attempt.
- Read all of Business Insider’s WeWork coverage here.
SoftBank Group recorded a masssive quarterly loss of $6.5 billion, spurred by some of it biggest tech bets like Uber and WeWork.
The Japanese investment firm reported its first quarterly operating loss in 14 years, stating it plunged by 704 billion yen ($6.46 billion) in the July-September period.
It was operating on a profit of 706 billion yen ($6.47 billion) the year prior.
Wednesday’s loss was far worse than even the most bearish estimates. A chart posted to Twitter by Bloomberg’s David Ingles shows just how steep the company’s losses were compared to the year’s prior.
—David Ingles (@DavidInglesTV) November 6, 2019
The company’s huge loss comes after its firebrand founder Masayoshi Son took huge financial risks by investing in startups like Uber and WeWork, which last month received more than $10 billion in bailout money after its failed IPO attempt.
On Monday, the Japanese magnate reportedly told his colleagues that he had “created a monster,” referring to WeWork cofounder Adam Neumann who stepped down as CEO in September before it shelved its IPO 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.
SoftBank has also invested in Uber, which has recently lost more than a quarter of its value since going public, according to CNBC. Several of SoftBank’s listed investments, including Slack and Guardant Health, slid in value over the quarter, according to Reuters.
This is a developing story.
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