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SoftBank to take control of WeWork

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SoftBank to take control of WeWork

SoftBank has initiated a deal with the office space provider WeWork to take 80% of the ownership of it.

The company has been going through an unfavorable time and thanks to the Japanese company SoftBank, it is going to get a much needed boost as SoftBank is seeking to take control of WeWork through a financing package, according to CNBC. In a statement, SoftBank, the Japanese conglomerate, stated that it will provide $5 Billion in the said financing and up to $3 Billion for existing shareholders.

SoftBank Chairman and CEO Masayoshi Son said, “SoftBank is a firm believer that the world is undergoing a massive transformation in the way people work. WeWork is at the forefront of this revolution.”

He also stated that WeWork’s “growth challenges” are “not unusual for the world’s leading technology disruptors,” as reported by CNBC.

“Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support. We remain committed to WeWork, its employees, its member customers and landlords,” Son further stated in a statement.

Once the deal is complete, it will increase SoftBank’s stake in WeWork approximately to 80%.

(Reference: CNBC, BBC News)

(Image source: Mandel Ngan | AFP | Getty Images)