Is Softbank's Son Apology For Poor Investments Genuine Or Due To Pressure?


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Japan-based multinational conglomerate Softbank (OTC:SFTBY) wrote off billions of dollars in losses from investments in Uber Technologies Inc (NYSE:UBER) and WeWork.

Softbank reported its first quarterly loss in 14 years last Wednesday, which may raise questions on CEO Masayoshi Son's judgement moving forward, Sibile Marcellus said on Yahoo Finance's "The Morning Brew" show. Some may even question if Son "even knows what he is doing" after investing billions of dollars in companies that burn cash so quickly.

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Softbank and Son may have been wooed by WeWork co-founder Adam Neumann's charisma and charm but didn't look at the financials, Marcellus said. Son may be guilty of "putting on rosy glasses" and as a result "got burned."

Son is not only "humiliated" but opened himself to further scrutiny, she said. Investors are now paying closer attention to Softbank's huge amount of debt, including $51 billion in bonds.

"Of course he is apologizing because he is under pressure," she said.

Son Is Genuine In Apologizing

Son admitted to "mistaken investment moves" in a letter to shareholders and his comments look genuine, "Morning Brew" host Kinsey Grant said. Also important to keep in mind Son's vision for his funds extends hundreds of years.

"WeWork will not be the only investment mistake that Masayoshi Son makes, neither will Uber be the only investment mistake that Softbank makes," she said.

Related Links

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This 141-Year-Old Retailer Is Outperforming Amazon

Forget tech behemoths. This old stock is expanding faster while raising dividends. Believe it or not, it has handily beaten Amazon’s 117% run since 2019. By reading Benzinga’s latest insider-only report, you can set yourself up for future profits and income with this stock, plus more.Get access for just $0.99.


Posted In: EarningsNewsFinancingIPOsTechMediaMasayoshi SonSoftbankWeWorkYahoo Finance