Softbank Group announced a sharp drop of 97% in quarterly earnings as well as the collapse of talks for the sale of Arm processors for $ 60 billion, intensifying pressure on the Japanese group to support its shares.
SoftBank announced profits of 29 billion yen ($ 251 million) in the October-December quarter, compared with a record profit of 1.17 trillion. yen a year ago.
SoftBank also announced that the sale of Arm to Nvidia has collapsed amid regulatory hurdles, in a significant reversal of its fundraising plans.
The Japanese investment giant stressed that it will recognize the end of the collapse of the talks, which Nvidia had deposited as a profit in the fourth quarter.
After tech companies sank into the “coronavirus valley” in the early days of the pandemic, SoftBank CEO Masayoshi Son saw a rise in valuations as start-ups like e-commerce company Coupang hit the market.
Valuations are now under pressure again as investors are skeptical of technology companies promising future profits and central banks cutting back on their support programs.
The group’s exposure in China has also affected performance, as authorities take action against technology companies.
Source: Capital
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