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© Reuters.By Gina Lee
Investing.com – Softbank (T:) is expecting a $16.5 billion loss for its Vision Fund, it said in a statement on Monday.
The Japanese conglomerate blamed the losses for the $100-billion fund on “the deteriorating market environment” caused by the COVID-19 pandemic. The expected loss is expected to lead to a group-wide loss for the first time in 15 years.
Should the Saudi-Arabia backed fund incur losses for the third straight quarter, Softbank faces a staggering annual operating loss of $12.5 billion.
The company is facing a financial squeeze after it cancelled a $3 billion investment for real estate startup WeLend in mid-March. Two independent WeLend directors announced lat week that they are suing Softbank over the soured deal.
Softbank shares fell more than 3% following the news. But they clawed back the losses on Tuesday, gaining 4.88% by 1:38 AM ET (6:38 AM GMT).
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