SoftBank Corporation Commits Another $3 Billion to WeWork
The new investment, made in the form of a warrant, gives WeWork an estimated company valuation of $42 billion
The warrant, which prices WeWork’s shares at $110 or more, gives the company an estimated valuation of $42 billion. In WeWork’s 2017 funding round, during which SoftBank invested $4.4 billion via its Vision Fund, the real estate company was valued at $20 billion. In August, Softbank invested an additional $1 billion in WeWork, this time in the form of a convertible note.
WeWork, the harbinger of the co-working trend, was founded in 2010 in New York by Israeli-born Adam Neumann and his partner Miguel Mckelvey. Today the company has almost 300 locations globally. WeWork reported revenues of $482 million for the third quarter of 2018, and a net loss of $497 million. For the first nine months of 2018, WeWork reported $1.25 billion in revenues, with a net loss of $1.22 billion.