FAST FIVE: Softbank Shares Tumble As Investors Waver Over New Fund After WeWork Farce
Softbank Shares Tumble As Investors Waver Over New Fund After WeWork Farce Update (2020ET): Softbank shares are opening down around 5% on news about the nervousness of investors.
* * * It seems finding a new multi-billion-dollar greater-fool is harder than you – or Masayoshi Son – thinks.
As Softbank scrambles to support/beg/ponzi its stake in WeWork within its massive Vision Fund, Bloomberg reports that the fund's biggest backers – largely middle-eastern sovereign wealth funds – are reconsidering how much to commit to its next investment vehicle.
As Bloomberg details: Saudi Arabia's Public Investment Fund, the first fund's biggest backer with $45 billion, is now only planning to reinvest profits from that vehicle into the second fund, according to people familiar with the talks.
Mubadala said discussions are continuing on whether or not any investment will take place.