WeWork May Get $3B From Japan-Based SoftBank
A Japanese billionaire’s promise to President Donald Trump could help WeWork in its quest to buy its own properties.
SoftBank CEO Masayoshi Son told Trump in December that he planned to invest $50B in the United States. His company is now close to finalizing a deal with WeWork worth more than $3B, CNBC reports. The investment would entail a $2B primary tranche of funding followed by a second one valued at more than $1B. Sources say SoftBank, which owns Sprint, could boost the secondary round to nearly $2B, bringing the total investment to about $4B.
WeWork slashed its 2016 profit forecasts by 78% early last year. CEO Adam Neumann cited higher-than-anticipated construction costs, building delays and lower remodeling subsidies from landlords as motivation to get a better hold on company finances. WeWork vice chair Michael Gross announced in October the $17B company was planning to establish an investment arm with the goal of buying its own properties through outside investors.
Should the SoftBank deal close, WeWork’s value would jump to over $20B.