SoftBank doubles down to save WeWork
SoftBank Group Corp agreed to spend more than US$10 billion to take over WeWork, doubling down on an ill-fated investment and paying off its co-founder Adam Neumann to relinquish control, people familiar with the matter said yesterday.
The deal represents a stunning reversal of fortune for the US office-space sharing startup, as well as its largest shareholder, SoftBank, which with the latest commitments will have spent more than US$19 billion on a company that is now valued at just US$8 billion.
The setback comes as SoftBank Chief Executive Masayoshi Son is seeking to convince investors to participate in the Japanese company鈥檚 second mammoth Vision Fund, for which he is seeking to raise US$108 billion.
To stem WeWork鈥檚 bleeding, SoftBank will need to reverse its widening losses and find a way to make it profitable.
The rescue financing also marks a dramatic fall from grace for Neumann, who as recently as last month was preparing to take WeWork public as chief executive after attaining a US$47 billion valuation for it in January.
While WeWork employees now face the prospect of thousands of layoffs, Neumann has secured a US$685 million side deal with SoftBank to step down from the board of WeWork鈥檚 owner, The We Company, according to the sources.
Neumann faced margins calls on his personal borrowings against WeWork鈥檚 private stock as a result of the collapse of the company鈥檚 valuation. SoftBank has agreed to give him US$500 million to refinance his personal loans, as well as pay him a US$185 million consulting fee, one of the sources said.
Neumann was negotiating stepping down from the board and would serve as an adviser on Monday.
SoftBank will provide US$5 billion in new money to WeWork in the form of debt, the sources said.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔$粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.