SoftBank Group reported its biggest ever quarterly net loss of $23bln as a flagship fund was hit by the sell-off in tech stocks.
The Japanese multinational conglomerate holding company said its Softbank Vision Funds posted an investment loss of ¥2,919.1 billion (US$21.61bn) for the three months to 30 June – pushing the group’s pre-tax loss to US$24.39bn.
The world’s largest technology fund has been hit by a slump in the valuation of tech stocks.
SoftBank said the Vision Fund losses included 293.4 billion yen for Coupang, 235.9 billion yen for SenseTime Group Ltd. and 220.7 billion yen for DoorDash Inc (NYSE:DASH), according to a report in Bloomberg.
They also mentioned drops at AutoStore Holdings and WeWork Inc (NYSE:WE).
Softbank has attempted to manage its finances defensively by raising US$10.49bn from the sale of pre-paid forward contracts using Alibaba shares, and selling 21.2 million T-Mobile shares for US$2.4bn.
The Japan-based conglomerate has also carried out a share buyback, buying ¥293.5 billion (US$2.17bn) of shares in the first quarter, bringing its total repurchase to ¥638.1 billion (US$4.72bn) as of June 30.
Softbank is authorised to buy up to ¥1 trillion (US$7.4bn) of shares under the ongoing share repurchase programme.