Softbank prepares to take control of Wework
Softbank is reportedly planning to take control of troubled office space provider Wework.
The Japanese investor, which already owns about a third of the company, plans to spend between $4bn and $5bn on new equity and existing shares, in a deal that will value Wework between $7.5bn and $8bn.
Read more: Wework creates committee to mull financial lifeline
Previous Softbank investment has been made through the firm’s Vision Fund, however Softbank itself is planning to take control, CNBC reported, citing sources.
Co-founder and former Wework chief executive Adam Neumann, who was forced to step down last month following a botched attempt at a public listing, will see his stake in the firm fall to low double digits following the deal.
Last week it was reported that Wework’s owner the We Company, had set up a committee to decide whether it would accept a rescue package from Softbank.
Read more: Wework set to sack 2,000 employees as bosses weigh up rescue plan
Reuters reported the property firm was in dire need of an injection of capital to stay in business and risked running out of money as early as the end of December.
Wework lost $1.9m in 2018, and burned through $2.36bn in the first half of 2019, according to company filings.
More to follow