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## SoftBank Group Corp. suffers a huge loss in the third quarter

YURI KAGEYAMA, Associated Press
34 mins ago

FILE – A pedestrian carries a phone past a SoftBank logo in Tokyo on May 12, 2022. Japanese technology company SoftBank Group Corp. racked up a huge loss in the July-September quarter as some of its investments soured, the company said Thursday, Nov. 9, 2023. (AP Photo/Shuji Kajiyama, File)

### SoftBank’s Financial Loss Due to Souring Investments

Japanese technology company SoftBank Group Corp. sustained a substantial loss in the previous quarter, largely due to its office-sharing investment in WeWork that did not yield favorable results.

The total loss for Tokyo-based SoftBank Group Corp. in the last quarter amounted to 931 billion yen ($6.2 billion), representing a significant downturn from the 3 trillion yen profit reported during the same period a year earlier. The company’s extensive investment portfolio renders its financial performance highly volatile, fluctuating in response to market trends.

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### WeWork Bankruptcy and Ripple Effects

Of note are the challenges faced by WeWork, which filed for Chapter 11 bankruptcy protection, primarily due to the upheaval in the U.S. commercial real estate market, further exacerbated by the drastic increase in vacancies in major cities like New York and San Francisco after the pandemic.

As a result of its substantial ownership, SoftBank Group Corp.’s financial repercussions related to WeWork in the July-September quarter amounted to 234 billion yen ($1.5 billion).

### Growth Strategies and Financial Resilience

In an online news conference, SoftBank’s chief financial officer, Yoshimitsu Goto, emphasized the company’s enduring strength, underpinned by cautious investment decisions and its commitment to sustained growth. While acknowledging the regrettable challenges with WeWork, Goto assured stakeholders that SoftBank would critically examine the missteps and improve future investment strategies particularly for its Vision Fund.

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### Future Prospects and Market Behavior

Highlighting a promising development, Goto mentioned the recent IPO of British semiconductor and software design company Arm, currently owned by SoftBank, which can influence the company’s long-term growth strategy.

SoftBank’s quarterly sales remained relatively stable, increasing marginally to 1.67 trillion yen ($11 billion). Notably, the recent sales of its stakes in industry giants like Amazon, Facebook, and Uber, as well as significant reductions in its Alibaba holdings, reflect the company’s strategic approach to navigating challenging times.

### Conclusion

Despite the financial setbacks, SoftBank Group Corp. shares demonstrated a 1.1% rise on the Tokyo Stock Exchange, underscoring investors’ confidence in the company’s long-term prospects and financial management.

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