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I think this is how it has to be seen, not as an individual investment but as a strategy to save face for the whole Softbank portfolio. It is better to dump 5
by ibero 7y ago
I think this is how it has to be seen, not as an individual investment but as a strategy to save face for the whole Softbank portfolio.
It is better to dump 5 billion into WeWork to move it from the "sure fire bankruptcy today" category into the "questionably over-investment with 18 month runway" category. Doing this keeps pressure off the entire investment portfolio now at a critical time when they are looking to raise funds for the new Vision Fund.
Also, there seems to be a bit of helping out JP Morgan as well. The article goes out of its way to link this cash infusion to helping repay JP Morgan credit line for Neumann. If nothing else, the article helps calm people/investors that JP Morgan wont be left holding the bag on that.