- Subtitles section
- Welcome back.
- SoftBank posting another loss in its second quarter.
- It says, it was related to the investment and financial support for WeWork
- which filed for Chapter Eleven bankruptcy this week,
- Deirdre Bosa has the details in today's Tech Check.
- Hey, D. Hey, Leslie.
- So, this quarter, should have been Matsuyoshi San's victory lap,
- He successfully listed ARM.
- It was the largest semi IPO ever and the fifth largest U.S.
- listing of all time.
- Masa even brought back the golden goose slide from twenty twenty one.
- You're looking at it right now.
- The goose is the information revolution.
- The eggs represent SoftBank successes.
- Maybe small to read.
- So I'll tell you what they are.
- Alibaba Yahoo Japan SoftBank's telco company.
- sprint and the latest golden egg arm.
- Unfortunately, though
- this graphic does not take into account SoftBank's losing bets
- and what's become its biggest black eye
- which is WeWork, and it continues to skew performance to the downside.
- That's what it did this quarter.
- The Japanese conglomerate posted a six point two billion dollar loss in the quarter
- and cumulative losses in WeWork.
- at a staggering
- may be able to cash in on soon.
- He called out TikTok parent ByteDance and Fanatics.
- Now, I want to point out another slide from the presentation,
- This shows how SoftBank's liquidity profile has strengthened from earlier this year,
- It tells you that private liquid investments make up less of the portfolio than it did before.
- And that means more capital
- more money to deploy as they continue to move on to an offensive investment stance focused on AI,
- Now, at the same time
- though, one of its largest holdings
- that's Arm,
- It's losing value on the public market.
- It's down from its IPO peak of sixty nine dollars a share
- and today on disappointing earnings
- it's down nearly six percent.
- So that raises some questions
- as to whether Arm can be the new Alibaba,.
- As you see here, Masasan has been able to draw down on its Alibaba stake over the years
- to make new investments
- and clock profitability,
- That stake has been dwindled down
- and Arm has increased its position in the portfolio
- going from eight percent to twenty four percent of the portfolio.
- But guys, I mean, Alibaba was a once in a lifetime
- you could argue, once in a few decades opportunity investment
- went from twenty million dollars to over a hundred billion dollars at one point
- so very unlikely that Arm is going to be as lucrative,
- Yeah, although a lot of people coming to arms defense today
- Dee, talking about the guidance being more cyclical
- and Rene Haas telling Jim last night that the story obviously is a lot more structural than that.
- Yeah, and that's fine.
- I mean, even if Arm goes on to become a hundred billion dollar
- two hundred billion dollar market cap
- it's not going to be that Alibaba in the portfolio.
- But remember that SoftBank still owns ninety percent of the company.
- So there are some things that can do.
- It can draw down that position.
- And we know that Masasan and SoftBank are on the AI hype train,
- Though so far, investments are really focused on logistics and transportation in this space,
- So it hasn't really been in some of the buzzier
- Kind of strictly generative AI companies
- like a Cohere, or a Character AI,
- So, we'll see, because the CFO reiterated again
- that they're going to be going out there and making some investments,
