FOX Business' Susan Li discusses WeWork's change in executive management.videoWeWork CEO Adam Neumann steps down

FOX Business’ Susan Li discusses WeWork’s change in executive management.

A tumultuous week for WeWork will ultimately bring more investment money for the office-sharing firm.

Continue Reading Below

SoftBank Group is reportedly planning to pump an extra $1 billion or more into WeWork through a renegotiated  warrant agreement struck before falling valuations delayed the startup's IPO, according to the Financial Times.

MORE FROM FOXBUSINESS.COMFED OFFICIAL WARNS COMPANIES LIKE WEWORK COULD POSE SYSTEMIC RISK IN DOWNTURNWEWORK IPO NOT WORKING — AT LEAST NOT YET

The plan calls for the Japanese firm's initially planned investment of $1.5 billion in WeWork, giving the U.S. company the right to receive the money in April next year in exchange for Class A common stock.

SoftBank and its Saudi-backed Vision Fund are WeWork's biggest backers and have already funneled more than $10 billon into the U.S. company.

WeWork has been in talks for a $3 billion to $4 billion loan from a consortium of banks contingent on it raising additional capital.

SoftBank invested in WeWork parent We Company at a $47 billion valuation in January, but investor skepticism led to a potential IPO valuation of as low as $10 billion earlier this month, Reuters reported.

The startup postponed its IPO last week, and on Tuesday, its co-founder Adam Neumann resigned as CEO, giving up the majority of his voting control after SoftBank and other shareholders turned on him.

CLICK HERE TO READ MORE ON FOX BUSINESS

Two insiders were tapped as co-CEOs with Neumann becoming a non-executive chairman.

Source Link:
https://www.foxbusiness.com/markets/softbank-likely-to-funnel-1-bln-more-into-wework-after-delayed-ipo-ft

[-0.669339]

Comments

comments

Advertisement