SoftBank likely to funnel $1B more into WeWork after delayed IPO - FT
A tumultuous week for WeWork will ultimately bring more investment money for the office-sharing firm.
SoftBank Group is reportedly planning to pump an extra $1 billion or more into WeWork through a renegotiated warrant agreement struck before falling valuations delayed the startup's IPO, according to the Financial Times.
The plan calls for the Japanese firm's initially planned investment of $1.5 billion in WeWork, giving the U.S. company the right to receive the money in April next year in exchange for Class A common stock.
SoftBank and its Saudi-backed Vision Fund are WeWork's biggest backers and have already funneled more than $10 billon into the U.S. company.
WeWork has been in talks for a $3 billion to $4 billion loan from a consortium of banks contingent on it raising additional capital.
SoftBank invested in WeWork parent We Company at a $47 billion valuation in January, but investor skepticism led to a potential IPO valuation of as low as $10 billion earlier this month, Reuters reported.
The startup postponed its IPO last week, and on Tuesday, its co-founder Adam Neumann resigned as CEO, giving up the majority of his voting control after SoftBank and other shareholders turned on him.
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Two insiders were tapped as co-CEOs with Neumann becoming a non-executive chairman.