A man enters the doors of the Cooperative Cooperation Room & # 39; WeWork & # 39; in Washington, DC.
Almond Ngan | AFP | Getty Images
SoftBank has signed a deal to acquire WeWork, the cooperating company said.
The Japanese conglomerate will offer $ 5 billion in new financing and a $ 3 billion takeover bid for existing shareholders. According to a WeWork press release, SoftBank will also accelerate an existing financing commitment of $ 1
After completion of the Offer and a Takeover Offer, SoftBank's stake in WeWork will be approximately 80%.
Masayoshi Son, Chairman and CEO of SoftBank, said in a statement, "SoftBank firmly believes that the world is undergoing a massive change in the way people work, and WeWork is at the forefront of this revolution."
The Japanese billionaire said WeWork's "growth challenges" are "not unusual for the world" leading technology disruptors. "
" With the vision unchanged, SoftBank has decided to double the company with significant capital and operational support. We remain committed to WeWork, its employees, its member customers and landlords. "Son said in a statement.
SoftBank's Tokyo-listed shares fell nearly 3% before the announcement.
As part of the deal, WeWork announced that they will appoint the main Opera of SoftBank to Marcelo Claure Former Chairman of the Board of Directors Former WeWork CEO Adam Neumann becomes the "Board Watcher" as the company expands the board of directors and receives voting rights control over its shares.
The Wall Street Journal reported Tuesday that the SoftBank Neumann would give $ 1.7 David Faber of CNBC announced Monday that SoftBank would spend between $ 4 and $ 5 billion on new equity and existing shares in the parent company of WeWork, The We Co. The Deal would value WeWork on a pre-funding basis at between $ 7.5 and $ 8 billion, a fraction of the previously allocated 47 million private valuation billion dollars.
Co-CEOs Artie Minson and Sebastian Gunningham replaced Adam Neumann in September after being put to the test for his unusual leadership style and obvious conflicts of interest. At the end of last month, WeWork suspended its IPO filing with investor criticism, rising losses and a dwindling IPO rating.
Since Neumann's departure, WeWork's new leadership has been working to bring the company back on track for growth, including research into the sale of several companies. The company was also expected to dismiss at least 2,000 or 13% of its staff, and According to The Guardian, another job cuts could be on the way.