SoftBank values WeWork at only $2.9B using a discounted cash flow method, down from $47B a year ago. The news comes as it reported a $17B loss for the Vision Fund, of which $10B came from January-March 2020. SoftBank, as a whole, reported a $10B loss in the fiscal year, which ended in March.
- Of the $81B invested from the Vision Fund, Son reported that returns are at -1%.
- SoftBank is in the process of selling $41B in assets to buy back shares and prop up struggling portfolio companies.
- To that end, it is seeking to unload $20B worth of T-Mobile shares in a bid to pare its stake in the company, sources told WSJ. The investment firm owns 25% of T-Mobile, which it acquired during T-Mobile’s recent merger with Sprint. T-Mobile currently has a market value of $125B.
- Ben Hunt of Epsilon Theory tweeted that he remembers SoftBanks slide deck last quarter, predicting a big turn around for WeWork.