SoftBank will take control of embattled WeWork and provide $4-5 billion in new funding, sources say. The deal would aim to help WeWork get back on track and reach profitability.
The deal values WeWork between $7.5 billion and $8 billion before the infusion, sources familiar with the matter say.SoftBank is in very advanced talks to take control of embattled work space company WeWork, according to people familiar with the matter.
SoftBank, led by Japanese billionaire Masayoshi Son, plans to spend somewhere between $4 billion and $5 billion on new funding and existing shares, sources say. The deal will value WeWork between $7.5 billion to $8 billion on a pre-funding basis and could be announced as soon as Tuesday. It is SoftBank itself taking control, not the start-up focused Vision Fund. After the move, Softbank would then have as much as 70% or more control of WeWork.
SoftBank exec Marcelo Claure will be involved in the company's management, while former CEO Adam Neumann's stake will fall to low double digits. Prior to the takeover, SoftBank had already invested $10.65 billion in the space-sharing company. Part of the new funding will involve warrants that were expiring, the sources said., about 13% of its staff, as recently as last week.
The anticipated SoftBank takeover marks the latest chapter in a dramatic year for what was at one point anticipated to be one of Wall Street's hottest initial public offerings. Last month, the
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New WeWork financials show growing debt in its international unit - Business Insider
Read more »
SoftBank seeks to avoid WeWork's liabilities with new investment: sourcesSoftBank Group Corp is attempting to become the majority owner of WeWor...
Read more »
Why does Trump think we've 'taken control' of Middle Eastern oil?Trump reporters, 'We've taken control of the oil in the Middle East ... the oil that everybody was worried about.' I think we now know what he was talking about
Read more »
Key incumbents are losing the money battle as 2020's top Senate races heat upThe most important 2020 races in the battle for Senate control are taking shape as data shows who is falling behind in fundraising.
Read more »
Controlled demolition takes down 1 crane looming over New Orleans Hard Rock HotelNEW: Video of the controlled demolition of two cranes at the Hard Rock Hotel in New Orleans shows an explosion followed by one of the cranes falling to the ground. The other crane appeared to remain standing after the smoke cleared.
Read more »
New WeWork financials show growing debt in its international unit - Business Insider
Read more »