SoftBank Vision Fund Reports Loss Due to Portfolio Markdowns, Parent Company Posts Profit

SoftBank’s flagship tech investment arm, the Vision Fund, reported a surprise loss of ¥96.7 billion in the March quarter due to markdowns on valuations in its portfolio of hundreds of unlisted startups, including JD Logistics, Better Holdco, DingDong, and AutoStore Holdings. However, SoftBank as a whole posted a net income of ¥231.1 billion, compared with a net loss of ¥57.6 billion in the same period the previous year, thanks in part to investment gains at the holding company and on derivative contracts. SoftBank’s cash pile reached ¥6.2 trillion by the end of March. The Japanese investment firm is focusing on strategic investments directed by SoftBank Group, particularly in artificial intelligence and semiconductors, following notable positives from the Arm Holdings IPO and share price rally. SoftBank has sold off or written down billions of dollars’ worth of its publicly-listed holdings in recent years as CEO Masayoshi Son realigns his focus. The company is also fighting against the prospect of rising interest rates and may offload its holdings in T-Mobile, Deutsche Telekom, or Arm to increase funds for investment. SoftBank’s attempts to leverage Arm technology and investing in AI services are expected to be well-received by the market, according to analysts.