WeWork just agreed to SoftBank's bailout which values the company between $7.5 billion and $8 billion, according to CNBC
- WeWork is taking a bailout from SoftBank, a deal which will value the company between $7.5 billion and $8 billion, CNBC reported on Monday.
- The embattled office company, whose valuation was once as high as $47 billion just a few months ago, was set to run out of money next month.
- WeWork had planned to raise billions from going public this fall, but its initial public offering was shelved after investors raised questions about its business model and leadership.
- For more WeWork stories, click here.
WeWork picked SoftBank to rescue the embattled office company, capping a tumultuous autumn that saw co-founder Adam Neumann ousted and his successors scramble to keep the company afloat.
CNBC reported Monday that the Japanese investor will spend $4 billion to $5 billion on new equity, valuing WeWork between $7.5 billion and $8 billion. It's a far cry from the $47 billion the company was valued at just a few months ago.
A spokeswoman for WeWork declined to comment. A representative for SoftBank did not immediately respond to a request for comment.
WeWork earlier this year was in talks to borrow $6 billion from banks which was contingent on raising at least $3 billion in a public float. But after the company released its IPO filing in mid-August, investors, analysts, and the media highlighted problems with its business model, conflicts of interest, and leadership. Six weeks later, WeWork's board of directors ousted controversial CEO Adam Neumann and replaced him with two co-CEOs, who shelved the IPO indefinitely.See more: Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked it
Co-CEOs Artie Minson and Sebastian Gunningham immediately turned their attention to rescuing WeWork, which didn't have enough money to get through November, according to reports. They looked to sell some of WeWork's acquisitions and the company's corporate jet; lay off up to a quarter of the company's workforce; wind down non-core businesses like WeGrow, its educational arm; ax members of Neumann's inner circle; and line up billions in funding.
To keep the lights on, WeWork had two options: a debt-and-equity package from SoftBank or an all-debt deal from JPMorgan. WeWork's seven-member board tapped directors Bruce Dunlevie and Lew Frankfort to form a two-man committee to evaluate the plans, Reuters reported. Dunlevie is a general partner at WeWork investor Benchmark Capital, while Frankfort was the CEO of handbag company Coach.
The pair were advised by investment bank Perella Weinberg Partners and law firms Skadden, Arps, Slate, Meagher & Flom and Wilson Sonsini Goodrich & Rosati, Reuters said.See more: Inside WeWork's troubled $850 million Lord & Taylor building: A tale of outsize ambition, audacious renovations, and now financial worries
SoftBank Group, the multi-billion dollar Japanese technology conglomerate and investment firm, has put together a bid that would save WeWork parent company We Co., just weeks before the co-working real estate company's imminent
(Reuters) - SoftBank Group Corp. has prepared a financing package for WeWork Companies Inc that would give it control over the shared office space company, the Wall Street Journal reported. The package
SoftBank is in talks to take control of WeWork as the lossmaking property group faces a cash crunch that threatens the group's solvency, according to multiple people briefed on the matter. The Japanese telecoms-to-technology group has
SoftBank Group Corp. has prepared a financing package that would give it control of WeWork and further sideline its founder Adam Neumann in exchange for relieving the shared-office startup's looming cash crunch, according
With founder Adam Neumann now out as WeWork's CEO, the company is taking drastic measures to preserve its future by distancing itself from the controversial former leader. The Wall Street Journal reports that new co-CEOs
WeWork is halting all new lease agreements with property owners as the lossmaking group tries to rapidly rein in its costs, according to people briefed on the matter. The move will rattle commercial property owners across
WeWork's Adam Neumann, who stepped aside as CEO earlier this week, will no longer to flying the friendly skies in the corporate jet. The Gulfstream G650, worth about $60 million, is grounded and now for sale,
Image Masayoshi Son's early bet on the Chinese technology giant Alibaba made him rich and cemented his reputation as a farsighted investor. Credit Credit Ryan Pfluger/August Anyone who has taken an Uber,
More News in Business
Calamos Advisors LLC increased its holdings in Boeing Co (NYSE:BA) by 30.0% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 332,482 shares
By Shreyashi Sanyal (Reuters) - The S&P 500 and Nasdaq indexes rose on Monday as technology stocks were bolstered by signs of progress in resolving the prolonged U.S.-China trade dispute, while losses in Boeing capped gains
Dunkin' accelerated its nationwide launch after New York sales were more than double what it had forecast Beyond Meat Inc., the faux-meat maker that's become a Wall Street darling, is announcing one of its biggest restaurant
(( Dunkin Brands' NASDAQ:DNKN) test of Beyond Meat's NASDAQ:BYND) sausages is going well. So well, in fact, that the coffee-and-donuts chain is rolling out the popular plant-based food to more than 9,000 of its U.S.
### Look out, California! PG&E is monitoring "strong and dry" winds developing off the coast of California again, and they're preparing to shut down power to several counties if those winds land onshore and cause
After debuting its jet-black "Halloween Whopper" and green-tinted "Nightmare King" burger over the last few years, Burger King is finally ready to make a sandwich with pasty white buns. The fast-food chain announced on Monday