|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||42.55 - 43.51|
|52 Week Range||42.08 - 112.50|
|Beta (3Y Monthly)||2.08|
|PE Ratio (TTM)||2.99|
|Forward Dividend & Yield||0.40 (0.94%)|
|1y Target Est||44.54|
The company's board is expected to meet as soon as this week and potentially consider a proposal for Neumann to become WeWork's non-executive chairman, which would allow him to stay at the company but inject new leadership to pursue its initial public offering (IPO), WSJ https://www.wsj.com/articles/some-wework-board-members-seek-to-remove-adam-neumann-as-ceo-11569171188?mod=breakingnews said. WeWork declined to comment on the report and SoftBank was not immediately available for a comment outside business hours.
Japan's SoftBank Group Corp, the biggest investor in WeWork owner The We Company, is exploring ways to replace Adam Neumann as chief executive of the U.S. office-sharing start-up, four people familiar with the matter said on Sunday. The rare showdown between SoftBank and one of its biggest investments comes after We Company postponed its initial public offering (IPO) last week, following pushback from perspective investors, not just over its widening losses, but also over Neumann's unusually firm grip on the company. This was a blow for SoftBank, which was hoping for We Company's IPO to bolster its profits as it seeks to woo investors for its second $108 billion Vision Fund.
The rare showdown between SoftBank and one of its biggest investments comes after We Company postponed its initial public offering (IPO) last week, following pushback from perspective investors, not just over its widening losses, but also over Neumann's unusually firm grip on the company. This was a blow for SoftBank, which was hoping for We Company's IPO to bolster its profits as it seeks to woo investors for its second $108 billion Vision Fund. It invested in We Company at a $47 billion valuation in January, yet stock market investor skepticism led to the startup considering a potential valuation in the IPO earlier this month of as low as $10 billion, Reuters reported.
SoftBank’s vice-chairman Ron Fischer sits on the WeWork board, as does Mark Schwartz, a former board member at the Japanese telecoms-to-technology group. It was unclear, however, whether a majority of the board members believed Mr Neumann should step down as chief executive.
Japan's SoftBank Group Corp is considering bringing around 40 companies with high growth potential to Brazil and expects to announce a large investment in the country in around two weeks' time, the group's head in Brazil, André Maciel, said on Friday. "We have around 40 companies that fit in Brazil," he said during an event at Cubo, a technological hub funded by Itaú Unibanco, the largest private bank in Latin America. SoftBank has been investing in many companies around the world, including some that are already operating in Brazil such as U.S. office-sharing startup WeWork.
SoftBank cut its exposure to Wirecard this week within hours of signing a strategic tie-up with the German payments company, in a move that could net the Japanese conglomerate a big profit while taking little risk. SoftBank did not purchase a stake in Wirecard, however. Wirecard’s shareholders gave final approval to the transaction on Wednesday, while also formally signing a “strategic cooperation agreement” with SoftBank.
Investments in Uber and WeWork are dragging down SoftBank’s stock. The selloff has mostly served to make a cheap stock cheaper
The deflation of Uber and of WeWork shows that you can only go so far when you sacrifice disciplined investing to the greed that comes with easy money.
(Bloomberg) -- Masayoshi Son, who built a $15.2 billion fortune investing in tech startups like Alibaba Group Holding Ltd., is betting on himself more than ever, even as his empire shows signs of vulnerability.The SoftBank Group Corp. founder has pledged 38% of his stake in the Japanese firm as collateral for personal loans from 19 banks, including Credit Suisse Group AG and Julius Baer Group Ltd., according to a June regulatory filing. That’s up from 36% at the start of the year and triple the level in June 2013.“It lets him monetize a large share of his wealth without foregoing influence over the firm,” said Michael Puleo, assistant professor of finance at Fairfield University’s Dolan School of Business in Connecticut. “But there’s an elevation of crash risk. If the share price falls low enough, he could get a margin call and that could be pretty costly.”The structure highlights the extent of Son’s exposure to SoftBank and its $100 billion Vision Fund. Shares in the Japanese conglomerate have been rocked recently by the postponement of WeWork’s initial public offering. The delay came after the office-rental unicorn was being marketed at a steep discount to the $47 billion figure that the Tokyo-based conglomerate invested at earlier this year. That’s spooked investors, who’ve sent SoftBank’s shares down 4.6% this week through Thursday as the listing unraveled, knocking about $700 million off Son’s net worth. The stock has still advanced 26% this year.Son, 62, also has leveraged his stake in the Vision Fund, which invests in tech startups. That boosts his returns if things go well, with outsized losses if they don’t. Uber Technologies Inc.’s falling market capitalization and WeWork’s travails are set to dent the 62% return on the fund that SoftBank reported through March.“There is a danger in companies where the founder calls all the shots regardless of whether there are loans,” said Robert Pozen, a senior lecturer with the MIT Sloan School of Management in Boston. “And when founders borrow a lot against their shares, they might be more tempted to make riskier decisions,” he said, adding that borrowing against 5% of one’s stake is usually considered prudentd.Pay OutSoftBank’s compensation plan also involves a lot of debt. Son loaned himself around $3 billion to invest in the first Vision Fund, according to people with knowledge of the matter, who asked not to be identified because the information isn’t public. Using loans for a private investment compounds Son’s risk because he would be less able to bail himself out if things go south, Pozen said.The loan was swapped for equity in the fund and will generate profits when deals make money -- and losses when they don’t. Vision Fund employees, including high-profile bankers and investors, receive base salaries and bonuses, but only get payouts when profits are booked.It’s unclear how much of this compensation will be reported in SoftBank’s next annual report. Son’s pledged shares, which currently have a market value of $9 billion, are excluded from his net worth calculation by the Bloomberg Billionaires Index. SoftBank spokeswoman Hiroe Kotera declined to comment.SoftBank is planning to lend as much as $20 billion to its employees to buy stakes in a second venture capital fund, the people said. Son may account for over half of the employee investment pool, they said.Ellison, MuskPledged shares have become an increasingly common way for founders to unlock the value of a stake without selling shares. Larry Ellison has a history of pledging Oracle Corp. stock to fund a lavish lifestyle, which includes trophy properties, America’s Cup teams and the Indian Wells tennis tournament. About 27% of his Oracle shares -- worth more than $16 billion -- are currently pledged. Elon Musk has pledged about 40% of his stake in Tesla Inc., according to a May 2019 filing.Still, the move comes with risks. “If the price of our common stock were to decline substantially, Mr. Musk may be forced by one or more of the banking institutions to sell shares of Tesla common stock to satisfy his loan obligations if he could not do so through other means. Any such sales could cause the price of our common stock to decline further,” Tesla warned in a filing.The risk-loving Son, who saw $70 billion wiped from his fortune in the dot-com crash, is unlikely to be fazed. He told shareholders at the company’s June meeting that SoftBank’s investment portfolio could grow 33-fold to 200 trillion yen ($1.8 trillion) in 20 years.(Updates Son’s net worth in fourth paragraph.)\--With assistance from Pei Yi Mak, Sonali Basak, Ben Stupples and Venus Feng.To contact the reporters on this story: Giles Turner in London at email@example.com;Tom Metcalf in London at firstname.lastname@example.org;Pavel Alpeyev in Tokyo at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Steven Crabill, Giles TurnerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A SoftBank-backed Canadian lithium project has hit another setback after bondholders with $350m in debt decided to withdraw their support following delays to its construction. Nemaska Lithium said the bondholders would be repaid after it announced in July its mine in Quebec would be delayed beyond June 2021, in accordance with the original debt agreement with the company. Nemaska is struggling to finance the developing of the Whabouchi lithium mine following a dramatic fall in the price of lithium, which is a vital ingredient in electric car batteries.
The 675-room property is this week being rebranded under the banner of Oyo, the Indian budget outfit that has reshaped its home market and is now opening a hotel a day in the UK and US. Fuelled with funds from SoftBank, the Japanese technology group, Oyo is plotting to become the world’s biggest hotel chain. “It’s very hard to put a limit as to the kind of growth, return, the market share that these guys could achieve,” said Munish Varma, managing partner at SoftBank’s Vision Fund.
FT subscribers can click here to receive Tech Scroll Asia by email. For your diaries: together with the Asia Society’s Center on US-China Relations, we will be holding two events in the US, in New York on October 16 and San Francisco on October 17. Hi everyone — the WeWork shock is big for SoftBank and for Asian tech as a whole.
With his flowing locks and gnomic pronouncement that the “energy of we [is] greater than any one of us, but inside each of us”, Adam Neumann has the air of a prophet. its planned initial public offering, even at a heavily reduced valuation, is a severe setback for the company, as well as its backers SoftBank and SoftBank’s Vision Fund, and visionaries everywhere. Mr Neumann’s authority was tested and has failed.
SoftBank has stakes in Uber Technologies Inc, General Motors Co and its Cruise self-driving car, China's Didi Chuxing, South-east Asia's biggest ride-hailing firm Grab, and India's Ola. Fair has partnered with Uber to rent out cars to users who want to drive for the ride-sharing company.
Japan's SoftBank Group Corp has led a $110 million financing round for Brazilian online home goods platform MadeiraMadeira, according to a statement on Tuesday. SoftBank's fresh capital for MadeiraMadeira comes from its $5 billion Latin America fund, launched in March, which has been directed to sectors ranging from banking and real estate to home goods and delivery services. Investment firm Light Street Capital is also participating in the funding round, alongside SoftBank and Flybridge Capital, which is already an investor in MadeiraMadeira.
WeWork shelved its initial public offering on Monday night after struggling to drum up investor interest in the multibillion-dollar listing, in an embarrassing setback for the New York-based property group. The company had planned to launch a roadshow marketing the IPO as early as Monday morning, and to price and list its shares next week. Mr Neumann, 40, had given his advisers at JPMorgan Chase and Goldman Sachs until the end of September to finalise the listing, which was expected to raise between $3bn and $4bn.
SoftBank’s $97bn Vision Fund has shaken Silicon Valley since its launch in 2017, helping push valuations of private technology companies to new heights and delaying their initial public offerings. Eighty companies have received funding — masterminded by SoftBank’s founder Masayoshi Son — including some of the world’s largest unicorns such as Uber, Slack and ByteDance. Validation was supposed to arrive with the IPO of WeWork, the shared workspace provider that is one of SoftBank’s biggest investments.
(Bloomberg) -- The biggest backers of SoftBank Group Corp.’s gargantuan Vision Fund are reconsidering how much to commit to its next investment vehicle as an oversized bet on flexible workspace provider WeWork sours.Saudi Arabia’s Public Investment Fund, which contributed $45 billion to the $100 billion Vision Fund, is now only planning to reinvest profits from that vehicle into its successor, according to people familiar with the talks. Abu Dhabi’s Mubadala Investment Co., which invested $15 billion, is considering paring its future commitment to below $10 billion, the people said, asking not to be identified in disclosing internal deliberations.A partial retreat of the two anchor investors would complicate fundraising for SoftBank Chief Executive Officer Masayoshi Son, who upended venture capital by making huge bets on promising yet unproven companies and spurring others to follow suit. Perhaps more than any other startup, WeWork has come to symbolize that brash style, and the success or failure of its IPO is likely to impact Son’s ability to raise cash for future deals.PIF executives are still considering options and no final decision has been made, one of the people said. A spokesman for the Saudi Arabian wealth fund declined to comment. Mubadala said discussions are continuing on whether or not any investment will take place. A representative for SoftBank’s Vision Fund didn’t immediately have a comment.“The suggestion we have made any decisions on the size or timing of a potential investment is simply unfounded,” said Brian Lott, a spokesman for Abu Dhabi’s sovereign fund. “Our discussions continue at an appropriate and deliberate pace, given the importance of this effort.”Sagging ValuationThe Wall Street Journal previously reported that Saudi Arabia’s sovereign wealth fund wasn’t planning to be a significant investor in the new fund but may still make a more modest commitment. A decision to only reinvest proceeds from the first fund would mark a significant shift. Saudi Arabia’s Crown Prince Mohammed bin Salman said last October that he planned to invest another $45 billion into any new fund.“We would not put, as PIF, another $45 billion if we didn’t see huge income in the first year with the first $45 billion,” he said in an interview with Bloomberg.WeWork is one of SoftBank’s flagship investments, along with Uber Technologies Inc., messaging software provider Slack Technologies Inc. and U.K. chipmaker ARM Holdings Plc. SoftBank, which with its affiliates, owns a 29% stake, and in January invested at a valuation of $47 billion, more than triple the $15 billion that’s currently being discussed in an IPO.Tensions have erupted within SoftBank over how it has handled its investment in WeWork. The Vision Fund, along with PIF and Mubadala, scuttled a $16 billion investment early this year Son had championed. SoftBank ended up making only a $2 billion investment from its parent entity, rather than the Vision Fund.SoftBank said in July that other investors had expressed interest in pledging a combined $108 billion for the second Vision Fund, though that was before WeWork forged ahead with plans for an IPO. The new fund is expected to collect money from Apple Inc., Microsoft Corp., Foxconn Technology Group and various Japanese financial institutions, with seven having signed memorandums of understanding to participate.(Adds that talks are ongoing in fourth paragraph.)\--With assistance from Matthew Martin.To contact the reporters on this story: Gillian Tan in New York at email@example.com;Giles Turner in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Christian Baumgaertel, Sree Vidya BhaktavatsalamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The We Co. roadshow is set to begin this week, perhaps as soon as today. Such corporate processionals through the ranks of blue-blooded Wall Street institutions are usually a triumph for buoyant, young companies. WeWork’s roadshow, on the other hand, will likely more closely resemble Cersei Lannister’s humiliating march to the Red Keep in Game of Thrones.Shame! WeWork’s valuation, $47 billion in a private funding round last January, could be set as low as $12 billion.Shame! Shame! Investors will no doubt be distrustful of any evidence of apparent self-dealing by the chief executive officer, Adam Neumann, such as buying properties and leasing them to the company. (WeWork took additional steps on Friday to change some of the unorthodox aspects of its governance structure and seek an independent board member.)As the nine-year-old office-sharing startup continues its stumble to the public markets, some prognosticators see this moment as something more significant: that a WeWork belly-flop portends the end of the unicorn era in Silicon Valley.The argument goes like this: SoftBank, the Japanese conglomerate and its $100 billion Vision Fund, has become an engine pushing the technology market to its limit. If it’s forced to retreat on its $10 billion commitment to WeWork, SoftBank will reconsider the nearly blind sanguinity that has perverted incentives for founders and distorted valuations in the industry over the last few years.In this seductive vision of a calamitous—and cleansing—WeWork initial public offering, modesty will once again return to Silicon Valley; humbled venture capitalists will stop bidding the valuations of unprofitable startups into the stratosphere; and the unicorns—those magical startups worth a $1 billion or more—will be put out to pasture, their legendary horns clipped like the tusks of poached African elephants.But that’s probably wishful thinking.The current cycle in tech started more than a decade ago, fueled by excitement over the iPhone, Facebook Inc. and the infusions of cash from a new generation of VCs like Andreessen Horowitz and Y Combinator. Business cycles tend to last seven to 10 years in Silicon Valley, and the resulting boom should have ended by now. But that was before the longest bull market in American history and a seemingly never-ending supply of venture capital from an array of new sources, including wealthy Chinese investors and Saudi Arabian oil money.It doesn’t appear to be stopping anytime soon. The stocks of Dropbox Inc., Lyft Inc., Slack Technologies Inc. and Uber Technologies Inc. are all under their IPO prices. And yet, many investors still believe.Uber lost $5.2 billion last quarter, dismissed more than 800 employees in the last two months and lost a policy battle with California lawmakers last week that could rock its business model. Somehow, Uber is still worth a cool $57 billion. Meanwhile, SoftBank says it’s going to raise another Vision Fund, with contributions from Apple Inc., Microsoft Corp. and Foxconn—this one even larger than the last.The belief underlying the persistent tech boom is that savvy entrepreneurs in vast markets with access to enough capital can engineer their way through even the most challenging issues. Witness CloudFlare Inc., the unprofitable internet infrastructure company that raised $525 million last week at a higher-than expected market value of $4.4 billion. Investors were able to overlook recent controversies over unsavory former CloudFlare clients, like the forum where a mass shooter hung out, and the stock popped on the first day of trading.What will it take to really put an end to the unicorn era? Perhaps an economic recession and an accompanying withdrawal of overseas capital from the Valley. Perhaps it will take a total collapse of a once-promising unicorn to change the risk tolerance of conservative investors like endowments, pensions and sovereign wealth funds.If the WeWork IPO flops, technologists will try to dismiss it as an outlier, the bad fortune of a real estate startup that was never truly a tech company. It will be viewed not as an indictment of current excess in Silicon Valley but as an exception to it. That’s not realistic, but then again, neither are unicorns.This article also ran in Bloomberg Technology’s Fully Charged newsletter. Sign up here.And here’s what you need to know in global technology newsSpeaking of SoftBank, some of its other companies would be hit hard by California’s new labor bill that would force gig economy companies to hire their workers.Lawmakers are seeking information from customers of the Big Tech companies. A House panel investigating potential antitrust violations has contacted customers of Amazon, Apple, Google and Facebook, according to documents reviewed by Bloomberg. They also asked the companies to hand over documents.Disney CEO Bob Iger left the board of Apple. The long-allied companies are now streaming rivals.Stanford University took money from Jeffrey Epstein, too. The school, located in the heart of Silicon Valley, received a $50,000 donation from a foundation backed by the late sex offender in 2004. Other donations to Harvard and MIT are prompting scrutiny of the schools and their faculties.A former Golden State Warrior is the U.S. face of Jumia, the Amazon.com of Africa.To contact the author of this story: Brad Stone in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Milian at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Were the We Company to press on with the IPO at such a low valuation, it would represent a major turning point in the venture capital industry's growth over the last decade, which has led to the rise of startups such as Uber Technologies Inc, Snap Inc and Airbnb Inc. It would mean that the We Company would be valued at less than the $12.8 billion in equity it has raised since it was founded in 2010, according to data provider Crunchbase.
(Bloomberg) -- SoftBank Group Corp. has agreed to about double its stake in Banco Inter SA, a Brazilian online lender that offers zero-fee products, a person familiar with the transaction said.The Japanese technology giant took an 8.1% stake in Banco Inter in July for about 760 million reais ($186 million). It’s acquiring the additional stake from members of the controlling families of the bank, including parts of the billionaire Menin clan, the person said.Banco Inter Chief Executive Officer Joao Vitor Menin, who holds 5.4% of the lender, isn’t among the sellers, according to the person, who asked not to identified because the information isn’t public. The Menin family founded homebuilder MRV Engenharia e Participacoes SA.SoftBank and Banco Inter declined to comment.Tokyo-based SoftBank is on a multibillion-dollar Latin America deal binge, setting its sights on about 300 targets in the region. It’s already spent more than $1 billion of a $5 billion fund it launched in March to fund technology companies in the region.Banco Inter’s preferred shares have gained more than 500% since the bank went public, among the region’s best-performing IPOs, according to data compiled by Bloomberg.The company, which started as a real estate-focused bank, reinvented itself as an online lender, offering accounts and zero-fee products while also selling investment and brokerage services.\--With assistance from Vinícius Andrade.To contact the reporter on this story: Felipe Marques in Sao Paulo at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Tony Czuczka, James LuddenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Sep.19 -- SoftBank Group Corp. Chief Executive Officer Masayoshi Son's bet on himself is leaving him feeling the impact of WeWork's IPO woes. Bloomberg's Sonali Basak reports and Lale Topcuoglu, senior fund manager at JOHCM, joins the conversation on "Bloomberg Daybreak: Americas."
WeWork's parent company is delaying its IPO until at least October, according to the Wall Street Journal. Yahoo Finance's Ines Ferre, Akiko Fujita, Emily McCormick and Jared Blikre discuss.