SoftBank likely to take control of WeWork - report

Monday, 21. October 2019 21:48

An investment of $4 billion to $5 billion is in the central part of the plan under construction by SoftBank Group Corp., which would get a controlling stake in We Co., CNBC learned from relevant but unnamed sources. The report published on Monday adds talks aren't finalized but that the deal for the acquisition of the company also known as WeWork could be announced as early as tomorrow.

Founder and former chief executive Adam Neumann would "sell some stock" to the coworking space lessor's biggest investor and his relationship with SoftBank's head Masayoshi Son is "somewhat repaired" and they are "working together again," according to the insiders.

The deal, also including new equity, would apparently value the target entity at $7.5 billion to $8 billion, a far cry from the estimated $47 billion at the latest funding round and before the failure of the plan to go public. WeWork has reached a critical point after scrapping the initial public offering as it was running out of cash.

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