SoftBank in talks to boost WeWork investment by $1 billion - FT

(Reuters) - SoftBank Group Corp is planning to invest an additional $1 billion or more in WeWork, altering a warrant agreement struck before WeWork postponed its IPO plans, the Financial Times reported, citing people briefed on the matter. SoftBank initially planned to invest $1.5 billion in the U.S. office-sharing startup as part of a warrant agreement, giving WeWork the right to receive the money in April next year in exchange for Class A common stock.

Reuters September 26, 2019 07:07:00 IST
SoftBank in talks to boost WeWork investment by $1 billion - FT

SoftBank in talks to boost WeWork investment by 1 billion  FT

(Reuters) - SoftBank Group Corp <9984.T> is planning to invest an additional $1 billion or more in WeWork, altering a warrant agreement struck before WeWork postponed its IPO plans, the Financial Times reported, citing people briefed on the matter.

SoftBank initially planned to invest $1.5 billion in the U.S. office-sharing startup as part of a warrant agreement, giving WeWork the right to receive the money in April next year in exchange for Class A common stock.

A new deal would reduce the price per share at which SoftBank acquires WeWork stock, giving it a larger stake in the unprofitable property group, FT said on Wednesday. The investment could unlock more financing options for WeWork, which is in talks for a $3 billion to $4 billion loan from a consortium of banks, FT added.

WeWork declined to comment on the report. SoftBank did not immediately respond to a request for comment.

WeWork co-founder Adam Neumann resigned as CEO on Tuesday and gave up the majority of his voting control, after SoftBank - its biggest backer - and other shareholders turned on him over a drop in the U.S. office-sharing start-up's estimated valuation.

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

We Company has said it is evaluating the "optimal timing" for an IPO.

(Reporting by Mekhla Raina and Maria Ponnezhath in Bengaluru; Editing by Himani Sarkar and Stephen Coates)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Stricter lockdown restrictions probably on the way, says UK PM Johnson
World

Stricter lockdown restrictions probably on the way, says UK PM Johnson

By William James LONDON (Reuters) -British Prime Minister Boris Johnson said on Sunday tougher lockdown restrictions were probably on the way as COVID-19 cases keep rising, but that schools were safe and children should continue to attend where permitted. COVID-19 cases in Britain are at record levels and the increase in numbers is fuelled by a new and more transmissible variant of the virus

Chanting anti-U.S. slogans, Iraq militia supporters mark year since Soleimani's killing
World

Chanting anti-U.S. slogans, Iraq militia supporters mark year since Soleimani's killing

By Maher Nazeh BAGHDAD (Reuters) - Tens of thousands of supporters of Iranian-backed Iraqi paramilitary groups chanted anti-American slogans in central Baghdad on Sunday to mark the anniversary of the U.S. killing of Iranian general Qassem Soleimani and an Iraqi militia commander.

U.S. Senate control, and Biden's agenda, at stake as Georgia runoff elections loom
World

U.S. Senate control, and Biden's agenda, at stake as Georgia runoff elections loom

By Nathan Layne and Joseph Ax CUTHBERT, Ga. (Reuters) -Control of the U.S. Senate – and with it, the likely fate of President-elect Joe Biden's legislative agenda – will be on the ballot on Tuesday when voters in Georgia decide twin runoff elections