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Son predicts 15 Companies in $100B Vision Fund will go Bankrupt

SoftBank’s Chief Executive Masayoshi Son talks about his predictions on the crisis companies are facing.

In his recent interview with Forbes, Masayoshi Son, CEO at SoftBank,  discussed that he is seeing 15 companies will go bankrupt in its $100 billion Vision Fund.

According to Son, the Vision Fund has become mindful of backing companies after investing $10 billion in the commercial real estate company WeWork that seems unlikely to pay off.

In the midst of the COVID-19 crisis, many companies see Son’s Vision Fund useless and its valuation in falling. Though the company’s valuation plunged to 32%, the legendary investor has other assets and a plan. 

“Despite people’s view that SoftBank might be struggling, we continue to grow,” Son said. “Don’t think about the past,” he added.

Going back to his prediction, Son said, “I would say 15 of them will go bankrupt, adding that he expects at least 15 of the company’s 88 bets to succeed.

He also discussed the past wherein he said that the company also has its “tough times” and he needs to confess it to the group. 

“We paid too much valuation for WeWork, and we did too much believe in the entrepreneur. But I think even with WeWork, we’re now confident that we put in new management, a new plan, and we’re going to turn it around and make a decent return,” said Son in a private message.

It is part of Son’s plan for SoftBank to return $150 billion in order to pay off its limited partners while remaining profitable. Vision Fund’s initial mission is to make vast investments to companies in order for them to grow and be successful.

Son also presented a slide about the companies that are under his Vision Fund “The companies today have an initial move ahead. I want you to see and feel what is going to happen,” he said. The companies he is talking about include ByteDance and the Korean e-commerce Coupang.

“In the beginning of the internet, I was criticized the same way. Even more so than now,” Son told Forbes. “Tactically, I’ve made regrets. But strategically, I am unchanged. Visio-wise? Unchanged.”

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