SoftBank is suffering, bad. Its Q3 earnings have come out, and it’s not looking good… there is a big, fat $7.3b loss marked on it. On top of that, the valuation of the public companies in its portfolio dropped — amounting to a total unrealized loss of $17.7b.
Perhaps the black sheep in the family, DIDI (DIDI) and Coupang (CPNG), had something to do with it. Oh and let’s not forget grumpy old uncle China who went around slapping regulatory restrictions around other members of the portfolio. All of this family drama has caused SoftBank’s shares to drop 24%.
In an attempt to reboot its undervalued shares, SoftBack released a statement announcing the buyback of up 14.6% of its outstanding shares, amounting to $8.8b.
why it matters
Though SoftBank is attempting to sprinkle pixie dust over the mess with a share buyback, given that China is not relaxing restrictions any time soon (which happens to be where many of its tech portfolio action is happening), the future is not looking like a walk in the park for the company.