WSJ: SoftBank wants to gain control over WeWork
Last week, WeWork IPO came under scrutiny and led the company to a cash deficit instead of billions of dollars. Due to such an unsuccessful proposal, SoftBank plans to exclude Adam Neumann, the co-founder of We Co. from the company's operations and business.
SoftBank is not the only savior of We Co. According to a WSJ report, there is a plan to raise billions of debts through a process managed by JPMorgan Chase & Co. "WeWork has retained a major Wall Street financial institution to arrange financing," a spokesperson for We Co wrote in an email. "Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company's management and its bankers over the course of this past week and this coming week"
SoftBank already owns about one-third of the company and its bid for the business would involve billions in equity and debt.
We Co.'s inefficient investments in public companies, such as Uber and Slack, have caused significant damage to SoftBank. The result was approximately the same as in 2017, when the company hoped to move forward with the second version of its ambitious Vision Fund, a $100 billion investment mechanism. The results were unsatisfactory. And it's not just public companies like Slack and Uber that are dragging down the fund. Investments in direct to consumer companies like Brandless, or the robotic pizza delivery startup Zume have also failed to deliver - despite hundreds of millions in commitments from SoftBank.
At the time of publication SoftBank did not give any comments.