SoftBank inks a deal to take control over 80% of WeWork ownership

By Nikita Chaurasia  Date: 2019-10-24

SoftBank inks a deal to take control over 80% of WeWork ownership

SoftBank has reportedly invested nearly USD 11 billion in workspace startup and real estate. In January, when the company decided to invest in WeWork, it did a valuation of around USD 47 billion. Since then, growing investor concern over WeWork’s business model and improper corporate control have drove WeWork’s possible valuation down significantly. The company decided to go public with a valuation of around $10 billion—ahead of ditching its plans for an IPO in 2019.

However, WeWork is now in headlines as SoftBank has taken control over its approx. 80% ownership. According to the real estate company, SoftBank will provide USD 5 billion in new financing and up to USD 3 billion in a tender offer for current shareholders. SoftBank will also get a move on its existing USD 1.5 billion financing commitment, said WeWork.

Masayoshi Son, Chairman and CEO, SoftBank, meanwhile said that the company believes that the world is transforming a way in which people work and WeWork is the torchbearer of this revolution. Son added that as WeWork shares the same vision, SoftBank has decided to double down on the company by offering considerable operational support and capital infusion. The company will also stay committed to WeWork, its member-consumers, its employees and landlords, he said.

Sources cite that WeWork will appoint Marcelo Claure, Chief Operating Officer, SoftBank, as the executive chairman of its board of directors. Former WeWork CEO, Adam Neumann will meanwhile become a “board observer” as the company is expanding the group of directors and taking voting control over his shares.

According to reports, SoftBank will give $1.7 billion to Neumann to step down as chairman and give up his voting rights. Co-CEOs Sebastian Gunningham and Artie Minson replaced Adam Neumann in September after he attracted scrutiny for his odd leadership style and conflicts of interest.

After Neumann’s exit, WeWork’s new leadership has successfully worked for getting the company back on track to growth, including exploring the sale of numerous businesses.

Source Credit - https://www.cnbc.com/2019/10/23/softbank-to-take-control-of-wework.html

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Apple unveils 16-inch MacBook Pro with high-performance M1 processors

Apple unveils 16-inch MacBook Pro with high-performance M1 processors

By Nikita Chaurasia

Tech giant Apple, Inc. has recently unveiled the 16-inch MacBook Pro, which promises extraordinary design and performance. The model can be customized with the all-new M1 Pro and M1 Max processors.    These new 10-core processors are ...

Kedrion Biopharma expands to North America with Prometic acquisition

Kedrion Biopharma expands to North America with Prometic acquisition

By Nikita Chaurasia

Prometic Life Sciences has developed the first FDA-approved treatment for Congenital Plasminogen Deficiency. This acquisition will enable easy access to advanced therapies for patients suffering from this rare disease. Kedrion Biopharma Inc. has...

Facebook Pages to reduce focus on Likes and followers for Indian users

Facebook Pages to reduce focus on Likes and followers for Indian users

By Nikita Chaurasia

Facebook Inc. has reportedly removed Likes from Facebook Pages for its Indian users to make the platform more user-friendly and easier to understand. This redesign of Facebook Pages was launched in January 2021 and has been rolled out for Indian user...

Merchant commerce platform Pine Labs eyeing USD 1 Bn Nasdaq listing

Merchant commerce platform Pine Labs eyeing USD 1 Bn Nasdaq listing

By Nikita Chaurasia

India is likely to witness a record number of IPOs this year, with several companies eyeing public listing to raise funds if the market sentiment remains positive. One such company, Pine Labs is reportedly planning to list itself on Nasdaq by October...

European climate group asks EU for tougher CO2 targets for truck makers

European climate group asks EU for tougher CO2 targets for truck makers

By Nikita Chaurasia

According to a recent study conducted by Europe’s Transport and Environment (T&E), the European Union (EU) should implement stricter CO2 targets for truck makers to swiftly transition to zero-emission models as present goals do not provide ...