SFTBY - SoftBank Finally Wipes Out $14B WeWork Losses As It Posts $6.6B Profit Riding On Tech Rebound And T-Mobile Shares | Benzinga
In a recent turn of events, SoftBank Group Corp (OTC:SFTBY) declared its entire investment in WeWork as a loss. This announcement comes despite SoftBank’s first profitable quarter in five.
What Happened: SoftBank decided to write off the entire investment in WeWork to zero in the fourth quarter of 2023, as mentioned by Reuters.
SoftBank’s most high-profile investment, WeWork, filed for bankruptcy in November 2023 after years of burning through SoftBank’s cash at inflated valuations. This led to a $6.2 billion loss in SoftBank’s venture arm, the Vision Fund, in the second quarter of 2023, reported CNBC.
On Thursday, SoftBank reported a net profit of 985.5 billion yen ($6.6 billion) for the quarter ending in December 2023. This marks a significant turnaround from the 744.7 billion yen ($5 billion approx.) loss in the same period a year earlier.
SoftBank had previously informed investors that its cumulative loss on WeWork exceeded $14 billion. Following ...