SoftBank Reports $2.4 Billion Loss Amid Vision Fund Declines

SoftBank Group Corp. reported a significant net loss of ¥369.2 billion ($2.4 billion) for the December quarter, reversing a profit of ¥950 billion from the previous year, primarily due to a decline in the Vision Fund's public holdings. This loss included a ¥309.9 billion hit from the Vision Fund, exacerbated by poor performances of companies like Coupang and Didi Global. Founder Masayoshi Son is currently trying to raise $500 billion for the Stargate artificial intelligence project, which has raised concerns regarding SoftBank's financial stability and its ability to invest in future technologies. To fund this venture, SoftBank is considering a project financing approach, with plans to raise 10% of the total through equity and utilize senior loans for up to 70%. The Vision Fund continues to hold investments in numerous startups, including ByteDance and eFishery, both facing significant challenges. Analysts suggest that the potential structure of the Stargate project may allow SoftBank to limit its financial exposure, reducing the need to sell off assets.