SoftBank Is Said to Plan to Abandon WeWork Shareholders Deal
SoftBank Seals WeWork Takeover
WeWork Rescue Deal Will Cost Japanese Investment Giant More Than $ 13 Billion.
The company said the Japanese conglomerate will provide $ 5 billion in new funding and up to $ 3 billion in a tender offer to existing shareholders. SoftBank will also accelerate the implementation of its $ 1.5 billion in financial commitment, WeWork says..
As a result of this deal, SoftBank's stake in WeWork will be around 80%.
SoftBank Chairman and CEO Masayoshi Son said in a statement: «SoftBank strongly believes that the world is undergoing tremendous changes in the way people work. WeWork is at the forefront of this revolution».
The Japanese billionaire stated that «growth problems» WeWork «are not unusual for the world's leading technological breakthroughs».
«As the vision remains unchanged, SoftBank has decided to double its investments in the company, providing significant capital inflows and operational support. We remain loyal to WeWork, its employees, customers and landlords», – Sona said in a statement.
Softbank to takeover co-working startup WeWork | Money Talks
WeWork said it will appoint SoftBank's COO Marcelo Claura as executive chairman of the board as part of the deal. Former WeWork CEO Adam Neumann will become «board observer», as the company expands its membership and at the same time gains control over its shares when voting, the company said in a statement.
The Wall Street Journal reported Tuesday that SoftBank will hand over $ 1.7 billion to Neumann in exchange for his agreement to step down as chairman and relinquish his voting rights..
As a result of the deal, WeWork is expected to be worth approximately $ 8 billion. At the same time, in January of this year, the company's valuation was about $ 47 billion..
The company, which rents office space and helps popularize coworking, has grown from one office in New York to over 500 offices worldwide. But in the first six months of this year, she lost about $ 900 million.
The company's plans for an IPO have received a sluggish response from investors who have expressed concerns about the firm's funding and management. WeWork Formally Pulls Off IPO Last Month.