Softbank ‘tightening governance’ at firms it backs after Wework’s near collapse
Softbank is said to be tightening governance at companies it has backed, as the conglomerate tries to limit the control of startup founders and renew confidence in its investments after Wework nearly collapsed.
The Japanese company, which has a $97bn investment arm called Vision Fund, will reportedly announce harsher governance standards and restrictions on dual-class share structures on Wednesday.
It comes as it endures a multibillion-dollar writedown because of bets on investments like the US-based office space startup.
The new standards will apply to investments made in the future, according to the Financial Times. Its Saudi Arabia-backed Vision Fund is in talks over how it can implement the measures.
Both SoftBank and the fund were unavailable for comment.
Softbank founder Masayoshi Son has a reputation of being a dealmaker who is not averse to taking risks. He claims to be guided by a gut feeling that allows him to “feel the force”.
However, observers have called into question his ability to pick winners, after several high-profile bets such as Uber have performed badly.
Softbank will subsequently try to have at least one board seat, at least one independent director, stop directors from owning supervoting shares and limit founders or management to less than half of the seats on the board, it is reported.
(Main image: Getty)