https://wccftech.com/softbank-faces-growing-backlash-over-wework-debacle/

In a dramatic twist, two of the largest investor’s in Softbank’s (TYO:9984) enormous $97 Billion Vision Fund are reportedly deliberating the scaling down of their participation in a secondary fund launched by the Japanese giant in July 2019. This development has occurred as WeWork – a company that provides shared workspaces for enterprises and constitutes one of the largest recipients of investment from Vision Fund – has stumbled in a spectacular fashion to go public. Due to the enhanced vulnerability of the WeWork’s business model to a downturn coupled with egregious breaches of corporate governance standards, the company has seen its valuation plunge from $47 Billion in January 2019 to a current low of $10 to $20 Billion prompting calls from Softbank to shelve the IPO (you can read our previous coverage here).

Masayoshi Son, Sofbank’s CEO, had announced in July 2019 the launch of another mega investment fund to complement the iconic Vision Fund. At the time, Softbank had intimated securing commitments worth $108 Billion from investors including Apple (NASDAQ:AAPL), Kazakhstan’s Sovereign Wealth Fund, Taiwanese investors, and a consortium of Japanese banks. Moreover, Vision Fund’s anchor investors were also expected to provide a sizable financial contribution to this venture. However, multiple reports have recently emerged that lend credence to the reluctance of these anchor investors to participate in the new investment fund.