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Softbank is getting exactly what it deserves, and it's thanks to something way bigger than WeWork

Softbank is getting exactly what it deserves, and it's thanks to something way bigger than WeWork
The Asahi Shimbun via Getty Images



Softbank took a $6.5 billion loss on investments in Uber and WeWork this quarter, and it deserves to lose more.




It deserves it not because these are simply bad investments, but because SoftBank approaches investing from a bad thesis. Its aim is to create monopolies.




SoftBank's strategy is to pour so much money into a company that it leaves competitors in the dust and consumers with no choice. Then the company has all the power.




This is bad for investors, bad for consumers, and bad for capitalism.



Softbank — the Japanese conglomerate and investment firm with seemingly limitless resources — is suffering. And in its suffering the company is getting what it richly deserves thanks to the toxic nature of its core investment philosophy.
On Wednesday, Softbank, which invested heavily in the darlings of Silicon Valley, reported a $6.5 billion loss, mostly because of investments in WeWork and Uber. It was the company's first quarterly loss in 14 years.
WeWork, as you likely know, imploded dramatically during an attempt to make it to the public markets. And in his presentation to investors Masayoshi Son, SoftBank's founder and CEO, was liberal with his mea culpas.
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