SoftBank, JPMorgan give offers for WeWork - reports

Monday, 14. October 2019 03:30

We Co., which until recently had the same name as its flagship business WeWork, reached a T-junction following the deterioration in financials, several major media organizations learned from insiders. Namely, SoftBank Group Corp., the biggest shareholder, has put forward a plan to back the struggling real estate firm with billions in debt and equity, according to the sources. The offer from the conglomerate, which controls one third, will apparently be analyzed within a day by the board, together with an alternative presented by JPMorgan and Co.

The biggest bank in the United States is said to be spearheading the initiative for which WeWork revealed includes sixty "financing sources" willing to borrow and provide equity worth a total of "several billion dollars." SoftBank's push reportedly implies stripping Adam Neumann, founder and previous chief executive, of much of his influence.

A collapse would not only be a major blow to the Japanese company and its Vision Fund but it would also rattle the commercial property market in places like New York, London and San Francisco.

Related Links: JP Morgan Chase & Co.Softbank Group Corporation
Author:
Breaking the News / IT