SoftBank dragged into red in Q2 by falling Vision Fund valuations

SoftBank Group Corp reported a quarterly loss on Monday as the Japanese conglomerate was whiplashed by a $10 billion hit at its Vision Fund unit amid falling valuations and a Chinese regulatory crack down on tech firms.

While CEO Masayoshi Son describes SoftBank as a goose laying “golden eggs”, referring to its stakes in startups that go to market, IPOs have dropped off and shares in many top assets fell during the quarter like online retailer Coupang that gave up a third of its value.

“The strategy of let’s create the perception of enhanced value by taking things public hasn’t really worked this year,” Redex Research analyst Kirk Boodry said.