Gurley criticizes SoftBank's strategy of deploying hundreds of millions, which forces companies into massive losses.
“I've I've been quoted publicly, like, they've, you know, played a strategy where you hand hundreds of millions of dollars to a company and say, here, go win in the market with this.”
Gurley explains large capital deployments force massive losses since companies lack infrastructure to absorb funds.
“the only way to deploy that amount of capital is to take on massive losses. There's there's no way to you know, these companies don't have massive infrastructure.”
Gurley questions why SoftBank would participate in a private credit pool given their typical investment approach.
“And this this I have three observations if all those things are true. One, I'm curious why SoftBank would wanna be part of a private credit pool. It's not what they've typically done.”
Gurley says SoftBank threatened to fund competitors if founders refused money, forcing preemptive rounds.
“And there's an implicit threat that, at least at SoftBank, Masa was very direct about and not implicit. That if you don't take it, I'll give it to your competitor.”