SoftBank Group Corp. will take control of WeWork to assist the office-space startup in its day-to-day operations. The Japanese tech conglomerate will own 80% of the WeWorkthat has been suffering cash-crunch for a long time.
Highlights of the deal
• SoftBank to put $5 billion in new financing
• WeWork shareholders to get up to $3 billion
• SoftBank will also accelerate its commitment to fund $1.5 billion
• SoftBank COO Marcelo Claure will be the next executive chairman of board of directors for WeWork
What was the story of WeWork failure?
One of the most valued startup in the US, WeWork witnessed a fall from the grace when its attempt to enter the stock market was floundered last year. SoftBank came to its rescue even after drowning $10 billion into the company.
Why did SoftBank invest in WeWork?
The bank is a firm believer that a massive transformation in work culture is going on. Despite being a startup, WeWork was at the forefront in this transformation. The bank decided to double down on WeWork and for this reason it invested a huge sum in … Read the rest