While not a stock we cover (listed only in Tokyo), SoftBank comes up a lot in our conversations. With their fingers in many tech pies, they are fast becoming a commonly referenced firm whenever we speak about tech companies.
With a recent downturn in valuations, and private equity under strain, the impact is being felt by the flagship Vision Fund.
Right now they are posting some serious record losses.
In fact, they are currently doing a share buy back to improve the price and even pledging their own shares as collateral. Not sure how it works doing a share buy back to improve the price while also offering your own shares as collateral which are impacted by the share buy back which is backed by… You get the point.
It is unlikely the current environment or past mistakes will slow the Vision Funds down. While their reputation has taken a few knocks, they still have the power when it comes to showing the cash to companies and their existing connections.
Depending on your view of active fund managers, SoftBank is either as visionary as their funds or as hype driven as WeWork.