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SoftBank CEO loses $4 billion in side deals

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Japanese billionaire Masayoshi Son has now lost more than $4 billion on a series of side deals he set up at SoftBank Group to boost his compensation, a painful blow triggered by the broad downturn in the technology market.
The SoftBank founder and CEO took the unusual step of establishing personal stakes in a series of SoftBank ventures in recent years, a mixing of company and executive interests that drew the ire of investors. Son holds 17. 3% of a vehicle set up under SoftBank’s Vision Fund 2 for its unlisted holdings, as well as 17. 3% of a unit within its Latin America fund, which also invests in startups. He has a 33% stake in SB Northstar, a vehicle set up at the company to trade stocks and derivatives.
Son has racked up a deficit of $2. 1 billion from his Vision Fund 2 interest, and $205 million at the LatAm fund, according to disclosures for the June quarter. His cumulative loss at SB Northstar is 274. 6 billion yen ($2 billion). The amount Son owes SoftBank from his interests in Vision Fund 2 and the LatAm fund rose about $1. 9 billion in the last quarter.
A representative for SoftBank said it is more accurate to call the figures for Son linked to the Vision Fund 2 and LatAm fund as “net payable” to the company rather than losses. There is no deadline for repayment and the value of his positions could improve in the future. Son’s net worth stood at $12. 1 billion after Thursday’s close, after adjusting for his deficit from his interests in Vision Fund 2 and LatAm fund, according to calculations by Bloomberg Billionaires Index.
SoftBank announced a record $23. 4-billion loss for the June quarter on Monday. Son pledged to implement sweeping cost cuts at his conglomerate to shore up its finances, along with a more measured pace of investments. Son is also selling off assets to raise cash and bolster his balancesheet.

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