The Vision Fund, operated by Masayoshi Son, Japan’s one of the wealthiest people who is having a net worth of $24 billion, will be going to invest another $5 billion into the office-sharing company WeWork, the newspaper reports. The company soon run out of cash by November month without securing more funding.
SoftBank has invested $11 billion in WeWork corp. And they claimed to be dealing with a writedown of around $2 billion. The breakeven on that investment is viewed at a $24 billion valuation.
WeWork shelved plans for its primary public offering as its market value was seen at around $10 billion to $12 billion well below the $47 billion valuations that SoftBank last invested in Last month. Extra recently, WeWork’s estimate has been seen at about $7 billion.
WeWork is not the only Vision Fund investment that has struggled.
SoftBank is going through a potential $4 billion writedown on its investment in Uber. Since going public at an estimate of about $82 billion in May, Uber shares have misplaced almost 25 % of their worth. Analysts have been initially anticipating the IPO to fetch a valuation of as much as $120 billion. The Vision Fund in the 2017 year took a 13 % stake within the ride-hailing company for $7 billion.
The jury remains still out on Softbank’s $19 billion Sprint investment, the outcome of which connects on the result of a possible deal with T-Mobile. Sprint and T-Mobile in April 2018 declared a $26.5 billion deal; however, its closing has been held up because of antitrust concerns. SoftBank shall be on the hook for Sprint’s $39 billion debt load if the deal falls apart.