The sudden collapse of Silicon Valley Bank looks set to increase scrutiny of SoftBank Group investments, and possibly drive its share price to Masayoshi Son¡¯s pain point.
The U.S. tech lender¡¯s failure has fueled investor concern over the exposure to start-up firms in the SoftBank Vision Funds. SoftBank shares have plunged 13% in four sessions to below ?5,000 and are nearing a level that some see as Son¡¯s threshold for announcing a buyback.
The SVB crisis has trained a spotlight on private tech investments, especially following a flight from highly valued stocks as the Federal Reserve started tightening last year. While SoftBank said it expects almost no impact from the U.S. lender¡¯s collapse, few investors think it will emerge unscathed.
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