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Softbank I SoftBank third-quarter earnings recovery seen driven by IPO boom


Updated Feb 06, 2021 | 08:09 IST
Softbank is seen posting a net profit of 171 billion yen ($1.63 billion) in the October-December quarter, by analysts
SoftBank third-quarter earnings recovery seen driven by IPO boom  |  Photo Credit: AP
SoftBank Group Corp is expected to extend earnings recovery when it reports third-quarter results on Monday as frothy markets drive a rally in the value of its tech investment portfolio and offer fertile ground for listings.
The Japanese conglomerate is seen posting a net profit of 171 billion yen ($1.63 billion) in the October-December quarter, according to an average estimate of four analysts polled by Refinitiv SmartEstimate.
That compares with net profit attributable to shareholders of 55 billion yen in the same period a year earlier, when operating profit was almost wiped out as the $100 billion Vision Fund plunged to a loss on investments like office-sharing firm WeWork. ....

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Can the pandemic save WeWork?


February 6, 2021
In an S-1 filing ahead of its ill-fated IPO attempt, WeWork included a recession among its risk factors. What it didn’t anticipate was a pandemic.
Over the past year, offices have shuttered around the world. Downtown centers became ghost towns, and revenue dropped sharply for coworking spaces as clients ditched short-term leases. In the second quarter of 2020, US flex office space leasing activity was down 45% year-over-year, according to a report from CBRE. Just this week, coworking space Knotel filed for Chapter 11 bankruptcy.
But it’s not all bad news. Over months of Zoom calls and Slack check-ins, office workers have had plenty of time to mull what it would mean to go (back) to the office. And while demand for flexible space has fallen, commercial real estate analysts say the future for coworking looks bright in part because big companies are now joining solo entrepreneurs in prizing office-space flexibility. Before the pandemic, commercial rea ....

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Does India Have A Startup Valuation Bubble?


Does India have a startup valuation bubble?
Many companies across sectors are being overvalued, valued on shaky metrics, and venture capitalists are more bullish than ever. But, is there a reason to it- method behind the madness, or does India have a startup valuation bubble?
January 20, 2021 / 12:41 PM IST
In October 2020, a set of investors were jostling to invest in a fintech startup. The startup did not need the money. It did not even start spending the $60 million it had raised six months prior. It does not burn cash. Also, it had no plans to raise for at least a year more.. It was already valued at a steep $300 million. But, the investors - including the biggest names in technology and first-time investors in India from the US, continued jostling. The startup’s founder, somewhat reluctantly and almost bemused, agreed to raise money, but at nearly double the valuation in six months. The investors agreed. ....

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WeWork Board of Dir. Sought Privileged Management Communication


Wednesday, January 20, 2021
In 
In re WeWork Litigation, C.A. No. 2020-0258-AGB (Del. Ch. Aug. 21, 2020), a special committee of the board of directors of The We Company (the “Company”) sought to obtain certain privileged communication among management of the Company and its counsel in discovery arising from breach of contract and breach of fiduciary duty case. The Court held that management of a Delaware corporation (“Management”) does not have the authority to unilaterally preclude a director of the corporation from obtaining the corporation’s privileged information, an issue of first impression in the State of Delaware.
In October 2019, Softbank Group Corp. and SoftBank Vision Fund (AIV M1) L.P. (together, “SoftBank”) proposed a number of transactions to ease the Company’s liquidity crisis. The board of directors (the “Board”) of the Company established a special committee of two disinterested directors (the “Special Committee”) th ....

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