Shulou(Shulou.com)11/24 Report--

On the afternoon of February 8, Beijing time, it was reported that SoftBank founder and CEO Masayoshi Son's personal debt to SoftBank has reached about US $5.1 billion (currently about 34.629 billion yuan) as losses in SoftBank's core venture capital department "Vision Fund" are intensifying.

SoftBank has been providing money for Son to invest in the company's funds, which he has not repaid for years. As the various investments of these funds implode, the value of Son's equity holdings is shrinking, so much so that his arrears to SoftBank snowball.

For example, by the end of September last year, the value of Son's 17.25 per cent stake in Vision Fund II had been almost completely erased. By the end of September, Son's arrears to SoftBank had reached $4.7 billion. Yesterday, SoftBank released its third-quarter earnings report for fiscal year 2022 ending Dec.31, with the Vision Fund losing another $5 billion, leading to an additional $400 million in Sun Justice's arrears to SoftBank, bringing its total arrears to $5.1 billion.

Specifically, SoftBank portfolio losses increased Son's deficit on Vision Fund Phase 2 to about $2.9 billion, on Latin America Fund to $344 million and on SB Northstar, the investment arm, to $1.85 billion, totaling about $5.1 billion.

In recent months, Son's stake in SoftBank has increased to more than one-third. The stakes have sparked controversy over corporate governance concerns, but Mr Son himself denies any conflict of interest.

For Son, there is no immediate deadline for repayment. Of course, his position may improve in the future. SB Northstar, for example, has deposited some cash and other assets. After Tuesday's close, Son's net worth was calculated to be about $12.3 billion.

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