SoftBank’s Fake Startup “Valuations” Come Unglued

by Wolf Richter
Wolf Street

But those paper gains were fun while they lasted.

The numbers are huge: SoftBank Group said that it would book a loss of $16.7 billion (¥1.8 trillion) at its Vision Fund for its fiscal year ended March 31, stemming “from a decrease in the fair value of investments due to the deteriorating market environment.” Separately, a spokesman of the fund told Barron’s that this loss included $9.9 billion in new losses.

In November, SoftBank had already reported a loss for the quarter (ended September 30) of $9.0 billion (¥970 billion) on its tech funds, including the Vision Fund. Because the “market environment” was already deteriorating, as WeWork and some of its other investments were blowing up. No Covid-19 needed.

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