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For sun Zhengyi, 62, this is a dramatic change. Just two months ago, when he was in Tokyo, he said that Softbank's business was improving after the failure of Wework“ There is always spring after a hard winter. " He said at the time
he stressed that Uber's share price, which is heavily held by Softbank, has soared, and the company is likely to profit from this share. He also announced that Wework would make a comeback
But the outbreak of coronavirus disrupted these plans. Because of the epidemic prevention and control, people from China to the United States no longer share offices. Taxi software companies (Softbank holds shares in the world's four largest taxi companies) also lost a lot of business. Even Uber CEO Dara khosrowshahi declared publicly, "I won't let my children sit in Uber." Another trouble for Softbank is that it has invested $1.5 billion in Oyo, a hotel reservation service. With global tourism stagnating, the company's business model is under attackRitesh Agarwal, founder and CEO of the reservation service, said in April that in response to the epidemic, the company would lay off employees outside India
Further complicating the situation, Agawal, 26, borrowed about $2 billion to increase his stake in the company, and sun Zhengyi personally guaranteed the loanSoftbank's controversial accounting practices also aggravate its earnings volatility. When the company's valuation rose, the vision foundation recorded profits, but these profits were only on the book, not the sale of shares. In the early days of the fund, both Wework and Oyo contributed to the profits
now, with the assets written down again, the losses of sun Zhengyi's future vision fund are accumulating. The fund has lost 240 billion yen since Softbank began to report its results, including forecasts for the most recent quarter, according to Bloomberg
After excluding sprint from its balance sheet, Softbank expects its sales to drop by about 36% in fy2019 to y6.15 trillion. Sprint has been merged with T-Mobile"coronavirus is the last blow, but bad investment and wrong judgment are the beginning." Hirai said
this article comes from the author of car home, which does not represent the standpoint of car home
