SoftBank readies $9.5bn WeWork rescue package

The Japanese conglomerate would also accelerate a $1.5 billion equity investment in the company - scheduled for next year - and SoftBank Chief Operating Officer Marcelo Claure will take over as chairman of the startup, the person said.

Japan-based SoftBank is ready to buy a controlling stake in WeWork, providing the shared office space startup desperately needed funding at a slashed valuation, a source told AFP on Monday.

WeWork needs to raise at least US$3 billion to cover its financing needs through the end of the year, according to sources.

An IPO filing by We Co. revealed that WeWork, which had a high-flying valuation of $47 billion following a $2 billion funding round by SoftBank announced in January, had a net loss of $1.9 billion previous year.

Messi faces Ronaldo, Van Dijk but no Neymar for Ballon d’Or
In response, the Liverpool star has stated that coming from the five-time Ballon d'Or victor it is a massive compliment. Van Dijk would be the first defender topping the poll since Italy's World Cup-winning captain Fabio Cannavaro in 2006.

With the office-sharing company almost out of cash, CNBC reported on Monday that the investment vehicle led by Japanese billionaire Masayoshi Son will shell out between $4 billion and $5 billion in fresh funding, sources told the outlet. SoftBank's Saudi Arabia-backed Vision Fund, which invested alongside Son's company in earlier funding rounds, is not expected to contribute to the financing.

Neumann now controls an economic stake of just over 20% in an investment vehicle with his co-founder, Miguel McKelvey. If accurate, the deal values WeWork near $8 billion - a staggering drop from the $47 billion once proffered by the company when it first filed to go public. Those voting rights were cut to three times those of ordinary shares when Neumann was ousted as chief executive last month.

Buffeted by skepticism from investors and questions about its governance, the company - which has yet to turn a profit - is reportedly working with JPMorgan Chase (JPM) to arrange fresh capital as a cash crunch looms. Not to be redistributed, copied or modified in any way.

Recommended News

  • Emergency as United Kingdom  flight diverted after cabin crew lose consciousness

    Emergency as United Kingdom flight diverted after cabin crew lose consciousness

    An American Airlines flight from London has been diverted due to a "spillage of cleaning fluid", according to a tweet Monday. I am told it is not a toxic substance.
    First 2019-2020 Flu Death in LA County Confirmed

    First 2019-2020 Flu Death in LA County Confirmed

    Anti-viral medication can shorten the duration of the flu and can reduce the risk of complications or death. She says that even if you get the flu shot and still get the flu, it doesn't mean the shot isn't working.
    Turkey warns Kurdish forces to withdraw before ceasefire ends

    Turkey warns Kurdish forces to withdraw before ceasefire ends

    A Turkish-U.S. deal reached last week has put Turkey's military invasion of northern Syria on "pause" until Tuesday. Another man shouted obscenities and talked of babies in Kurdish-held areas who have died in the Turkish offensive.
  • US, China trade deal doesn't have to be signed in November: Ross

    US, China trade deal doesn't have to be signed in November: Ross

    He added that it's more important to have a "proper deal" than an exact date of when it occurs. The U.S. did not raise tariffs from 25 percent to 30 percent on October 15.
    UAW Workers Set To Vote On GM Contract Offer

    UAW Workers Set To Vote On GM Contract Offer

    The tentative agreement between the United Auto Workers and General Motors is getting mixed reviews from union members. The major development could end the more than month long strike, which will continue during the voting process.
    Former Georgia, Miami coach Mark Richt 'doing fine' after heart attack

    Former Georgia, Miami coach Mark Richt 'doing fine' after heart attack

    Richt was the head coach at Georgia for 15 seasons, amassing a 145-51 record with two SEC championships and five SEC East titles. Former Miami Hurricanes head football coach Mark Richt is recovering after suffering a heart attack Monday morning.
  • Dennis Quaid Engaged To Sweetheart

    Dennis Quaid Engaged To Sweetheart

    As Dennis and Laura prepare to exchange vows, here are five things you should know about the gal who will be the soon-to-be Mrs. Unfortunately, their relationship lasted for just a decade and they separated in 2000, with their divorce finalized in 2001.
    Erdoğan urges United States  to ensure withdrawal of YPG/PKK

    Erdoğan urges United States to ensure withdrawal of YPG/PKK

    The pullout largely abandons America's Kurdish allies who have fought IS alongside US troops for several years. President Donald Trump announced he was withdrawing the bulk of U.S. troops from northeastern Syria.

    Legionnaires' disease outbreak hospitalizes almost 100, kills 4 in North Carolina

    Officials say the sources included hot tubs and diffusers that had been on display at an event center. A previous report determined that the hot tubs were the common thread between each of the patients.
  • Suge Knight sells life rights to Ray J to develop new projects

    Suge Knight sells life rights to Ray J to develop new projects

    Ray J will reportedly be in charge of selecting any possible biopics or biographies about or involving Knight. Knight is now serving 28 years in prison after pleading no contest to voluntary manslaughter.
    Demonstrating Humor: The best jokes made amid Lebanon's protests

    Demonstrating Humor: The best jokes made amid Lebanon's protests

    Hundreds of thousands of demonstrators flooded the streets on Sunday for a fourth day of anti-government protests. Protesters sang into the night in Beirut and continued to demonstrate in other parts of the country.

    Markets Right Now: Stocks rise with earnings in focus

    Advancing issues outnumbered declining ones on the NYSE by a 1.95-to-1 ratio; on Nasdaq, a 2.09-to-1 ratio favored advancers. Halliburton Co HAL.N shares gained 6.4% after the oilfield services provider detailed further planned cost reductions.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.