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
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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 the startup company. The deal brings the cash strived WeWork back to life and working. The bank also offered $1.7 billion to WeWork co-founder Adam Neumann to quit.
Source: https://bit.ly/361di6q