Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ "We created a monster," SoftBank CEO Masayoshi Son tells WeWork

"We created a monster," SoftBank CEO Masayoshi Son tells WeWork



  Masayoshi Son, Chairman and CEO of SoftBank Group Corp., responded during a press conference in Tokyo, Japan on Wednesday, August 7, 2019.

  • Masayoshi Son, CEO of Japanese SoftBank mega investor, reported on colleagues that "we created a monster" on WeWork, reports the Financial Times.
  • SoftBank will introduce stricter standards for managing share class structures after the WeWork fiasco on Wednesday, FT said.
  • SoftBank is expected to take the multibillion-dollar written off to WeWork, FT said.
  • See the Business Insider homepage for more stories.

Masayoshi Son, CEO of Japanese mega investor SoftBank, told his colleagues that we "created a monster" at WeWork after investing billions in the company, only to release it later, the Financial Times reported.

Last month, SoftBank rescued a money-backed real estate company just over $ 8 billion with an accelerated payment of $ 1

.5 billion just to ensure that the company did not run out of money. SoftBank, which is one of the major support companies, is now in control of the way it invests.

FT also reported separately, citing unnamed sources, that SoftBank would introduce stricter standards for managing dual-class share structures on Wednesday after the WeWork debacle, face-to-face for Son, which the newspaper said was " known as "risk averse".

SoftBank is expected to take a multi-billion dollar write-off on WeWork, FT reported.

Before the rescue, SoftBank had invested more than $ 10 billion in WeWork, and the office-sharing firm was valued at $ 47 billion at its peak. The company, planned for IPOs and backers, is dreaming of an estimated $ 100 billion.

But the intense scrutiny of WeWork's management and business model caused the company to delay indefinitely its IPO, and its idiosyncratic co-founder Adam Neumann stepped down as CEO in September, followed by a guarantee last month.

Son, the Financial Times quoted a person close to him as saying he was shocked by the ordeal. The Japanese tycoon did not say anything publicly about WeWork after the financing deal, though he said he was "embarrassed" by SoftBank's mistakes in general.

"We created a monster," a colleague's son told the newspaper. And in regards to Neumann: "We gave him all the capital."

This, along with Uber, which lost more than a quarter of its public domain value and, according to CNBC, has cost the Japanese company $ 600 million so far, leads to investors who are worried about the real value of SoftBank's endeavors.

"If SoftBank says it's a value, how much should you believe?" FT cites Kirk Boodry, a technology analyst at Redex Holdings, who publishes a research platform at Smartkarma.

WeWork and SoftBank did not immediately respond to Business Insider's request for comment.

Read the Financial Times report here.


Source link