$22-billion rout: Softbank pays heavy price for ties with Saudi

Masayoshi Son has already paid a price for his close ties to Saudi Arabia. It could soon go much higher. Son’s SoftBank Group plummeted the most in more than two years on Monday after Saudi Arabia came under fire for the disappearance of journalist Jamal Khashoggi. The kingdom is the biggest outside investor in SoftBank’s $100 billion Vision Fund, which has backed Uber Technologies, WeWork, Didi Chuxing and Slack Technologies.
 

Though Saudi officials have denied wrongdoing, Turkish authorities allege the Washington Post writer was murdered after entering a Saudi consulate in Istanbul. The US is pressing for an explanation and considering punishments, while business leaders including the CEO of Uber have pulled out of Saudi Arabia’s “Davos in the Desert” event. SoftBank’s Monday plunge brings the decline in its market value from a September peak to $22 billion.
 

Saudi Arabia’s King Salman has ordered an internal investigation into the Khashoggi’s disappearance, which could hold people accountable if the evidence warrants it, according to a Bloomberg report on Monday.

The trouble for Son is that his grand vision depends on Crown Prince Mohammed bin Salman, who pledged $45 billion for the Vision Fund after a 45-minute pitch from Son and has promised a similar amount for the next fund. Not only are those commitments now in question, but SoftBank could face a revolt in Silicon Valley if entrepreneurs begin to think taking its cash is akin to blood money.
 

Pompeo to meet Saudi king 
 

US President Donald Trump on Monday said he was sending Secretary of State Mike Pompeo to meet with Saudi Arabia’s King Salman over the unexplained disappearance of Khashoggi.

In a post on Twitter, Trump said he was sending Pompeo "immediately" but gave no other details. Trump also said he had spoken with the king about Khashoggi. Salman denied “any knowledge of whatever may have happened” to Khashoggi and told him the Saudis are working closely with Turkey on the case, Trump wrote.