Reports: Softbank Cuts Back on Planned WeWork Investment
WeWork’s premier backer intended to invest $15 to $20 billion to become the co-working company’s majority stakeholder. Instead, Softbank now plans to invest $2 billion, the Financial Times first reported
Japanese investor SoftBank Group Corporation is cutting back on its planned investment in WeWork, according to reports Monday by the Financial Times, Bloomberg, and Reuters. Softbank is reportedly preparing to invest $2 billion into the New York-headquartered co-working real estate company. Late last year, it was reported that SoftBank was in talks to invest $15 billion to $20 billion to become WeWork’s majority stakeholder.
Founded in 2010, WeWork operates 300 co-working locations globally. WeWork reported $1.25 billion in revenues for the first three quarters of 2018 and a net loss of $1.22 billion. SoftBank has invested $4.4 billion into the company in 2017, and an additional $1 billion in August 2018.
Softbank founder and CEO Masayoshi Son. Photo: Bloomberg