SoftBank Group—Lost $11.5 billion in equity on WeWork investment after CEO overrode lieutenants' objections and inflated valuation to $47 billion
Masayoshi Son overrode his lieutenants' objections and invested billions from both SoftBank Group and Vision Fund in WeWork, lifting its valuation to $47 billion by early 2019 despite fundamental business weaknesses. After WeWork's failed IPO attempt in 2019, SoftBank provided a $9.5 billion rescue package. WeWork filed for bankruptcy in November 2023, costing SoftBank an estimated $11.5 billion in equity losses plus $2.2 billion in outstanding debt. Son told shareholders 'I fell in love with WeWork' and admitted in August 2022 he was 'embarrassed' and 'ashamed' about Vision Fund management.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | primary | -1.00 |
| Overall incident score = | -1.000 | ||
Score = avg(topic contributions) × significance (critical ×2) × confidence (0.50)