Hey so I'm not a money expert (my bank account can attest to this), but allowing a bank to borrow BILLIONS of dollars from other banks to finance a pipe dream being propped up by silicon valley carnival barkers seems like a bad idea?
So like, this type of white collar crime is going to just keep escalating in scope until we start executing the suits, right? I mean if I was addicted to gambling, and they kept letting me bet with other people's money, I would keep doing it too.
What I love about all this (narrowly before thinking of the horror of the crash coming) is - ooenai have only been able to raise 10bn of the 40bn they wanted - that 10bn is in reality a bank loan via a third party, and also that bank loan has to be used to fund the other thing they already announced
Softbank made a little over a billion USD net income in 2023.
Wonder what they expect to sell in the next 12 months that makes it sensible for them to take out a twelve month loan on an investment that has no chance of booking profit and pretty limited chance of a larger round on that timeline.
I failed Econ twice in college because everything felt like bullshit. And now, twenty odd years later, I get confirmation that, yes, beyond a certain level it's all fanfic about dead presidents.
SoftBank isn’t a bank. It’s an investment company. It’s had three big hits in its history: Getting in on the ground floor with Alibaba (China), founding Yahoo! Japan as a joint venture with Yahoo! In the 90s (Yes. Yahoo! Is still a big thing here.)
And buying Vodafone Japan in ‘06.
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Wonder what they expect to sell in the next 12 months that makes it sensible for them to take out a twelve month loan on an investment that has no chance of booking profit and pretty limited chance of a larger round on that timeline.
What do they do, balance transfer to the Capital One card they keep for emergencies?
And buying Vodafone Japan in ‘06.
This looks and feels like one that could really damage it though.