SoftBank Group Corp reported a 97% drop in quarterly profit and the collapse of a deal worth up to $80 billion to sell chip designer Arm on Tuesday, adding to pressure on the Japanese conglomerate to boost its sagging shares.
Masayoshi Son’s investment giant reported a net profit of 29 billion yen ($251 million) in the October-December quarter versus a record 1.2 trillion yen a year earlier when its tech portfolio rallied.
SoftBank said it has dropped the sale of chip designer Arms to U.S. firm Nvidia due to regulatory hurdles.
The scrapped deal marks a major setback for SoftBank’s fund-raising plans as valuations again come under pressure from both growing investor caution and China’s regulatory crackdown on tech firms.
– Reuters