Investing.com – SoftBank will take control of WeWork in a deal that would cut the value of the work space company to about $8 billion and provide a much-needed cash injection, according to published reports citing people familiar with the matter.
- Softbank plans to spend between $4 billion and $5 billion on new equity and existing shares to take a 70% controlling stake in WeWork. The deal would value WeWork between $7.5 billion to $8 billion and could be announced as soon as Tuesday, according to the reports.
- We Work was valued at $47 billion as recently as January. It shelved plans to go public after its IPO prospectus in August revealed a $900 million loss in the first half of the 2019.
- The report comes just a week after reports suggested that WeWork was running out of cash and had been in talks with JPMorgan (NYSE:) and SoftBank to raise funds.
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