SoftBank Q3 profit crumbles as Arm deal crashes

SoftBank Group Corp has reported on a 97% crash in quarterly profit and the collapse of a deal to sell chip designer Arm worth over $60 billion.

SoftBank squeezed out a net profit of 29 billion yen ($251 million) in the October to December quarter, compared with a record 1.2 trillion yen profit booked a year earlier.

SoftBank also announced that the sale of Arm to Nvidia had fallen through amid regulatory clamp down.

SoftBank’s Vision Fund unit posted an investment gain of 111.5 billion yen during the quarter, a sharp decrease from a 1.4 trillion yen gain a year earlier.

Many SoftBank portfolio companies are trading below their listing price, with office-sharing firm WeWork (WE.N), ridehailer Grab and used-car platform Auto1 all falling during the quarter.

The group’s exposure to China has also affected performance, as regulators take action against tech firms.

The earnings come at a watershed moment for the conglomerate as senior executives exit the firm, including Chief Operating Officer Marcelo Claure, who led the restructuring of WeWork and launched the group’s Latin American-focused fund.

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