Softbank Group Corp Reports Its First Quarterly Profit 📈
Scott D. Clary | Daily Business, Tech & Finance Newsletter
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Here’s whats happening:
- SoftBank Group reports its first quarterly profit
- Twitter reportedly cuts more jobs
- Kraken freezes accounts linked to certain funds
- GoFreight raises $28 million in Series A
- Sequoia Capital Writes Off FTX Investment to Zero
Softbank Group Corp Reports Its First Quarterly Profit 📈
Japan’s SoftBank Group Corp reported its first quarterly profit, marking the first net profit in three quarters.
- SoftBank reported a net profit of 3.033 trillion yen ($21.77 billion) for the July-September quarter.
- In Q1, the group posted a 3.16 trillion yen loss (approx $22.67 billion).
- For the July-September quarter, the group’s profit was mainly generated from the sales of its shares in Alibaba Group Holding.
- In the second quarter, SoftBank’s Vision Fund posted a 1.38 trillion yen ($9.8 billion) investment loss.
The bigger picture:
In the latest quarter, the value of SoftBank’s listed investments in some companies has seen a downfall. Notably, Soft Bank’s Vision Fund will also write down its investments in the troubled crypto exchange FTX to zero.
SoftBank Group CEO, Masayoshi Son, says that the company will be very selective with its investments going forward.
He added that SoftBank would continue with its defensive strategy and invest in fewer deals amid a slowdown in global financial markets.
Twitter Reportedly Cuts More Jobs ✂️
After eliminating thousands of employees in the first week of taking over Twitter, Musk has reportedly eliminated many contractual employees.
- The latest move from Musk has affected around 4,400 of its 5,500 workers.
- Notably, Twitter has removed these employees without any prior notice. The employees realized that they were removed from the company when they lost access to the company’s email and internal communications systems.
- The job cuts were announced across Twitter’s global operations, and it includes employees working in content moderation, marketing, engineering, and other departments.
Tesla CEO Elon Musk completed his $44 billion deal to acquire Twitter in late October. Since then, he has been up-front about the need to cut costs.
As a first step, Musk has eliminated nearly half the company’s employees, including top-level executives.
While these job cuts will certainly address the issue of cost-cutting, at least in part; however, the larger impact these job cuts will have isn’t clear, but it seems as though Twitter’s moderation, and daily operations, could start to weaken as a result.
Kraken Freezes Accounts Linked to Certain Funds 🥶
Crypto exchange Kraken has frozen some accounts owned by the FTX Group, Alameda Research, and their executives after FTX filed for bankruptcy protection in the United States.
What should you know?
- Kraken has taken steps to freeze verified accounts on its platform belonging to FTX Group, Alameda Research, and their executives due to the recent events surrounding FTX.
- The crypto exchange has decided to freeze these accounts to protect users’ funds after contacting law enforcement agencies.
- The move from Kraken comes shortly after FTX was hacked when over $600 million worth of assets were siphoned from its wallets.
Kraken said that its first concern is to protect customers’ finances, and it will continue to do so by maintaining a higher standard of accountability and transparency in the cryptocurrency industry.
The exchange also noted that other clients’ accounts are not included in those that have been frozen and that the company currently has full reserves.
GoFreight Raises $28 Million in Series A 💰
Web-based freight management platform GoFreight has raised $28 million in its Series A funding round.
The funding was co-led by Flex Capital and Headline, along with participation from LFX Venture Partners and Palm Drive Capital.
Existing investors Mucker Capital, Cornerstone Ventures, and Red Building Capital also participated in the round.
What will GoFreight do with the funding?
GoFreight will use the fresh proceeds to develop other features such as intelligent offers, rate management, and order management.
Founded in 2017, GoFreight is a web-based SaaS for international freight forwarders.
This Los Angeles and Taipei-based startup has helped freight forwarders of all sizes to digitalize their operation and process management, covering all shipping methods from sea to air to land.
The platform helps shippers to stay competitive by providing them with both backend & frontend software, making their operations run smoother & also allowing them to set up a storefront and create quotes in minutes.
Sequoia Capital Writes Off FTX Investment to Zero 🔻
Venture capital firm Sequoia Capital has written off its $214 million investment in struggling cryptocurrency exchange FTX to zero.
This move from Sequoia Capital came shortly after authorities froze FTX’s assets in the Bahamas — the legal domicile of the firm founder Sam Bankman-Fried.
While it’s not surprising that Sequoia decided instead to write off its investment in FTX, it will leave several firms with ties to FTX in a precarious position about making the same decision.
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