SoftBank likely had the Vision Fund on its its mind when it decided to rescue WeWork - Business Insider

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SoftBank likely had the Vision Fund on its its mind when it decided to rescue WeWork

The Vision Fund's strategy is coming into question

And then there's WeWork. SoftBank itself valued the company at $47 billion in January, and investment bankers pitched the company on the idea that it could go public at a valuation of $60 billion or more. In theory, SoftBank could have let WeWork fail. Investors do that all the time, deciding not to extend a lifeline to struggling companies, even ones they've backed in the past. Many make the decision that the chances or amount of a potential payoff are not worth additional investment; better to write off the amount already invested than to lose even more.

Still, the danger for SoftBank is that in protecting its investment today, it will suffer a bigger loss later on. To prevent that, the company should be focusing on doing what it can to help WeWork, beyond just giving it cash, said Dan Malven, a managing director at 4490 Ventures.

 

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What a circus act and the ringmaster is cnbc pumping this garbage all day. The crew there should go on Jordan Belforts podcast the wolfs den

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