tech

For SoftBank's Son, coronavirus turns vision to illusion

15 Comments
By Anirban Sen and Sam Nussey

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15 Comments
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I predicted a debacle the day I first heard about the Vision Fund.

The post-corona world isn't going to be Vision-Fund friendly. Son envisions the sharing of spaces and transportation services in the future, throwing billions at unproven startups. Sorry, there's going to be a lot less appetite for that from now on.

The best move for Son is to divest aggressively, and give the Saudis and others back their billions. If not, this highly leveraged nightmare may implode and spread contagion throughout the global economy....the last thing we need now.

2 ( +2 / -0 )

No wonder Son is a friend of Donald - both with wind in their heads...

-3 ( +0 / -3 )

At least he is smart enough to blow other people's money.

Not quite, he's obliged to pay many of the investors a 7% yearly dividend, regardless of the fund's performance. That's like a 7% loan (in negative rate environment!). LOL. He's not that smart.

1 ( +1 / -0 )

At least he is smart enough to blow other people's money.

Not quite, he's obliged to pay many of the investors a 7% yearly dividend, regardless of the fund's performance. That's like a 7% loan (in negative rate environment!). LOL. He's not that smart.

1 ( +1 / -0 )

If Son is reckless again, Paul Singer and other American equity firms will swiftly takeover his Vision Fund and SoftBank itself. Masayoshi Son was scared when Paul Singer bought a huge stake, and the Korean man has to discuss the option of going private.

Worse, he should not visit Saudi Arabia soon. I heard Prince MBS coerced physical violence with wealthy Arab investors to force them buying shares of Saudi Aramco. If Vision Fund turns into crap, Son should fear any sharp object from now.

0 ( +1 / -1 )

Vision fund going to zero but that's ok for son-san, not his capital just his reputation. Wework, a six year old would know better not to invest in that bloated pig.

3 ( +3 / -0 )

While I don’t agree with Son san’s investment philosophy and style, at least he has guts and “vision” unlike 99% of Japan Inc.

2 ( +4 / -2 )

 Paul Singer and other American equity firms will swiftly takeover his Vision Fund and SoftBank itself. 

I doubt anyone would want it. A collection of companies that weren't profitable even when the economy was booming is now in need liquidation, as the Financial Times has stated.

1 ( +1 / -0 )

I doubt anyone would want it. A collection of companies that weren't profitable even when the economy was booming is now in need liquidation, as the Financial Times has stated.

ARM Holdings, Alibaba and Softbank division of telecommunication are quite valuable. If Americans takeover the Softbank Telecom, foreigners would control most of Japanese telecommunication infrastructure. Shinzo Abe would declare it as a national crisis, but he would be too toothless to do anything. Abe does not want to risk Trump's wrath.

1 ( +2 / -1 )

Maybe it's time for Vision to do what it should have done all along, invest in small startups, provide backing, guidance, and support, diversify rather than focus on "big-ticket" items... which we've seen fall big time like "WeWork". How many small startups could have benefited with the amount of money thrown at WeWork, and how many of those could have yielded returns ... collectively in this case I'd wager, somewhat better than the WeWork debacle. And Collectively, had the Vision fund .. had the Vision, to invest in such small startups, it would have been living up to it's namesake... Vision towards the future. Sadly, a lost opportunity, for now. Maybe Son will see the light, and reignite the "Vision".

1 ( +1 / -0 )

@xeno man

ARM Holdings, Alibaba and Softbank division of telecommunication are quite valuable.

Yeah, and I was talking about Vision Fund companies, which those are not. Still, ARM's profits have been shrinking for the last few years. In fact, ARM decided to sell to Son, because the sale would relieve pressure on the company to be profitable(!).

As for Softbank, it's reporting huge losses, as it has a huge stake in Vision Fund, which is tanking and expected to tank even more. As for Alibaba, Son is already selling part of his stake in that company, in order to ease the worries of Son's many frightened creditors. A lovely situation, wouldn't you agree?

2 ( +2 / -0 )

Yeah, and I was talking about Vision Fund companies, which those are not. Still, ARM's profits have been shrinking for the last few years. In fact, ARM decided to sell to Son, because the sale would relieve pressure on the company to be profitable(!).

If Western investors decide to buy them, they would buy them for the cheapest price. Unlike Masa Son, buy high sell low.

I recently heard Apple is going to use ARM instead of Intel for their Macbook. They would have a huge interest of buying ARM if Son sells the company cheaply. For Alibaba, I am not so sure that Americans would buy into Chinese promise. Last time, we find out that Lucking Coffee faked all the data. Alibaba is probably the same. You can't trust any Chinese company without any institutional change. SoftBank Telecom is a real jewel because it enables one to control the national telecommunication network of a nation. Again, investors would certainly buy it when the price is cheap.

 A lovely situation, wouldn't you agree?

Son is an idiot for a long time. He is the second coming of Daewoo Chairman who recently passed away.

1 ( +1 / -0 )

We are not god, we should not critizied anyone that we have not worn the same shoes, Why did u not saying anything when Son san was successcful ???. Have U done such a huge business like him ???.

-2 ( +0 / -2 )

Sad that on paper at least for now obviously shows loss of value. However, he still has the pwercentage of ownership which when economy returns to some normalcy and starts to grow, he can recover. For him, like many who are wealthy, time and change are their two biggest ally and at the same time the biggest enemy. If he can withstand the delay and loss of immediate value and revenue, and can bear the recovery period expenditures supporting and waiting for production and growth, he can still recover. The only handicap will be in what sector his investments were and where that sector will be after this pandemic. However, given his past wisdom and ability to select the right sectors and those entities that prosperd so far, he should remain confident and not let pundits influence his decisions. At least we all know that none of the pundits are as wealthy or as wise in business as he has been.

He influences and provided for thousands of employees in those companies he has a stake in. I hope he does not yet abandon them, just for his purposes. It is those that are working in those companies that gave him his wealth.

0 ( +0 / -0 )

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