WeWork and SoftBank have announced a deal that will see the Japan-based tech company buy out around 80% of the beleaguered real estate company.
SoftBank is already WeWork’s largest investor, to the tune of more than USD 10 billion. The new deal includes USD 5 billion in further funding, USD 1.5 billion that had already been pledged for the future, and a USD 3 billion tender offer for existing shareholders outside SoftBank. WeWork claims, however, that SoftBank won’t have a majority of voting rights at any company meeting, making it an “associate” rather than a subsidiary.
This latest injection of liquidity suggests a degree of faith in WeWork’s long-term prospects, which would put Son out of step with the broader investment community; WeWork was forced to scrap its IPO after investors baulked at the details in its S-1 filing.
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