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The WeWork saga could finally be over.
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(Updated 5:02 p.m. EST, 10/21/19 at )
Topline: After months of uncertainty surrounding WeWork’s meteoric rise and fall, the company will now fall to an $8 billion valuation after it accepted a bailout offer from its largest shareholder, Japanese investing conglomerate SoftBank, CNBC first reported on Monday.
- The deal could be announced as soon as Tuesday and will value WeWork between $7.5 billion and $8 billion—an 83% decline from the $47 billion valuation the company received in January.
- Softbank, led by Japanese billionaire Masayoshi Son, plans to spend between $4 billion and $5 billion on new and existing equities to complete its takeover of WeWork.
- SoftBank (the group itself is taking control, not its Vision Fund) will control as much as 70% or more of WeWork after the takeover, while former CEO Adam Neumann’s stake will go down to low double digits, according to CNBC.
- Executives at WeWork had previously been weighing two financial rescue packages—one led by SoftBank and one led by JPMorgan Chase—as it scrambled for cash following its failed IPO.
- On October 10, Forbes lowered net worth estimates for both Adam Neumann and his other co-founder, Miguel McKelvey, to below $1 billion each.
Key background: WeWork has imploded over the last month, after it canceled its highly anticipated IPO and ousted CEO and founder Adam Neumann. The company’s new co-chiefs immediately began selling off the company’s assets—including Neumann’s famed $60 million private jet—to cut costs and raise cash.
This is a developing story.
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The WeWork saga could finally be over.
Getty Images
(Updated 5:02 p.m. EST, 10/21/19 at )
Topline: After months of uncertainty surrounding WeWork’s meteoric rise and fall, the company will now fall to an $8 billion valuation after it accepted a bailout offer from its largest shareholder, Japanese investing conglomerate SoftBank, CNBC first reported on Monday.
- The deal could be announced as soon as Tuesday and will value WeWork between $7.5 billion and $8 billion—an 83% decline from the $47 billion valuation the company received in January.
- Softbank, led by Japanese billionaire Masayoshi Son, plans to spend between $4 billion and $5 billion on new and existing equities to complete its takeover of WeWork.
- SoftBank (the group itself is taking control, not its Vision Fund) will control as much as 70% or more of WeWork after the takeover, while former CEO Adam Neumann’s stake will go down to low double digits, according to CNBC.
- Executives at WeWork had previously been weighing two financial rescue packages—one led by SoftBank and one led by JPMorgan Chase—as it scrambled for cash following its failed IPO.
- On October 10, Forbes lowered net worth estimates for both Adam Neumann and his other co-founder, Miguel McKelvey, to below $1 billion each.
Key background: WeWork has imploded over the last month, after it canceled its highly anticipated IPO and ousted CEO and founder Adam Neumann. The company’s new co-chiefs immediately began selling off the company’s assets—including Neumann’s famed $60 million private jet—to cut costs and raise cash.
This is a developing story.