Life has not been easy for son this year.

Softbank Corp., which it founded, suffered the biggest loss in history in the second quarter and narrowly turned a profit by selling BABA shares in the third quarter, but the loss of its flagship vision fund increased by 20% compared with the same period last year, and its heavy bet on FTX, the king of cryptocurrency, may cause the company to lose all its money. In addition, the listing of its chip design company ARM is particularly bumpy.

What is more suffocating is that, according to media reports on Friday local time, Softbank Corp. confirmedThe 65-year-old man owes Softbank Corp. a total of 4.7 billion US dollars.The reason behind this is Softbank Corp. 's growing investment losses in technology and huge debts that make his stake in Softbank Corp. 's second Vision Fund worthless.

It is also reported that son's current net worth is 13.9 billion US dollars.But it is not clear whether this is the result of deducting the huge debt of nearly $5 billion.

There are huge debts after huge losses in investing in technology stocks.

It is reported thatSoftbank Corp. has been providing money for son to invest in the company's funds, which he has not repaid for years. With the implosion of various investments in these funds, the value of equity held by son is also shrinking, so that the amount of money he owes the company is also snowballing.

The first is SoftBank's second vision fund worth $56 billion.

Unlike the first vision fund (valued at $100 billion), it is supported by tens of billions of dollars from the Middle East sovereign wealth fund.Softbank Corp. 's second vision fund has no outside investors. Softbank Corp. and son are the only two investors, but the latter is still borrowed from the former.

It is reported that son holds a 17.25% stake in the fund, but its value almost completely evaporated at the end of September. In the first quarter, son's stake in the fund was worth $682 million. As early as the end of 2021, the amount was as high as $2.8 billion.

Softbank Corp. deducted the value of equity from the money he owed to the group at the end of 2021, after which he owed the company only $4 million. That is to saySon owed Softbank Corp. 2.8 billion US dollars for investing in the fund, but Softbank Corp. has not yet recovered these arrears.

But after huge losses on technology stocks, the value of equity vanished, leaving only debt.

It is worth mentioning that Softbank Corp. 's second Vision Fund also FTX the victims of the thunderstorm. Softbank Corp. CFO said at a briefing on Friday that Softbank Corp. had previously invested about $100m in FTX.

During the currency storm, a report triggered a large capital run on FTX. Unable to make up for a funding gap of up to $8 billion, FTX filed for bankruptcy with regulators on Friday, which also meansSoftbank Corp. 's investment of 100 million US dollars is likely to be "wasted".

Media reportsSoftbank Corp. Group expects to write down the entire value of its FTX stake to zero.

Son still owes Softbank Corp. $669 million for investing in Latin American funds, but that amount has fallen to $252 million if the value of son's equity in the fund is taken into account.

The $4.7 billion that son owes Softbank Corp. also includes losses from SB Northstar, an internal hedge fund.

It is reported that son must personally bear the loss of Northstar 1/3. By the end of September, the fund's total losses on stocks had widened to nearly $6 billion.

However, if Northstar's huge bets on derivatives pay off, Mr son will earn 1/3. Similarly, if the second Vision Fund is profitable to invest in private technology companies, then son will make a considerable return without the need to invest any money in advance.

The loss after madness

Over the years, son made crazy bets on global technology companies, making Softbank Corp. once one of the largest and most profitable technology investment companies in the world.

But now, with the superimposed financial environment of the epidemic continuing to tighten, global stock markets in the doldrums, and technology stocks losing ground, son's "madness" has also made Softbank Corp. one of the most injured institutions in the falling tide of technology stocks, suffering huge losses for two consecutive quarters.

So son had to adjust his strategy. In the last quarter, SoftBank halted almost all new investments on the one hand and sold shares on a large scale to resolve its balance sheet on the other. According to the financial report, Softbank Corp. cashed out a total of 38.7 billion US dollars by selling BABA shares.

Softbank Corp. also carried out a "big slimming" internally, according to the media, the proportion of layoffs in Softbank Corp. 's vision fund was as high as 30% by the end of September.

Benefiting from the sale of BABA shares, Softbank Corp. turned his net profit into profit in the third quarter and finally came up with a report card that was barely "decent" half a year later.

At the same time, Mr son announced that he would step back from the day-to-day operation of Softbank Corp., with Yoshimitsu Goto, the "more defensive" chief financial officer, in charge.

But Mr son said he would concentrate on helping his chip subsidiary Arm go public.