SoftBank takes over 80 percent of WeWork

Wednesday 23 October 2019 13:45 CET | News

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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Keywords: Softbank, WeWork, funding, partnership, real-estate, IPO, investment, banking, banking group, Japan, Asia, APAC
Categories: Banking & Fintech | Payments General
Countries: Japan
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Banking & Fintech