As per the latest development, Japanese billionaire Masayoshi Son led SoftBank is taking control of WeWork as part of a desperately needed lifeline. As per the agreement, SoftBank said it would provide $5 billion (£3.9bn) in new financing and up to $3bn for existing shareholders at $19.19 per share.
Masayoshi Son, Chairman & CEO of SoftBank Group Corp:
SoftBank has decided to double down on the company by providing a significant capital infusion and operational support. We remain committed to WeWork, its employees, its customers, and landlords.
On top of that, SoftBank will be accelerating an existing commitment to fund $1.5 billion. This deal gives the Japanese conglomerate SoftBank an 80% stake in the company.
The deal provides the company with much-needed cash to execute its plan to accelerate the company’s path to profitability and positive free cash flow.