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SoftBank posts $251 million Q3 Profit; Arm deal collapses

SoftBank Group Corporation had announced a 97% drop in quarterly profit after the Arms deal worth up to $80 billion to sell chip architect Arm collapsed, adding to the strain on the Japanese company to help its hanging shares.

Masayoshi Son’s investment giant detailed a net benefit of $251 million (29 billion yen) in the October-December quarter compared to 1.2 trillion yen a year earlier when its tech portfolio energized.

After tech unicorns pushed  into the “valley of the Covid” at the beginning of the COVID-19 pandemic, SoftBank CEO Masayoshi Son rode a recuperation in valuations as new companies, for example, online business firm Coupang came to market.

Presently valuations are again under tension as financial backers cast a doubtful eye over tech firms promising future benefits and national banks move towards paring pandemic stimulus.

The Vision Fund unit posted a speculation gain of 111.45 billion yen during the quarter.

Numerous portfolio organizations are exchanging beneath their listing price, with office-sharing firm WeWork, ridehailer Grab and trade-in vehicle platform Auto1 all falling during the quarter.

Vision Fund 2, which had $51 billion in submitted capital at Dec-end, has invested $43.1 billion in over 200 startups.

SoftBank said its arrangement to sell chip creator Arm to Nvidia had fallen through in the midst of administrative obstacles.

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