SoftBank is using investigators to avoid the WeWork buyback
SoftBank Group is, reportedly, addressing the investigation of the regulatory authorities to avoid its earlier promise to buy out the stock of WeWork shareholders for US$3 billion. The information comes from The Wall Street Journal.
The company has been experiencing difficult times for the last months and the investors have been losing their confidence. SoftBank, the backer of WeWork, has provided a relief package for the company and has committed to the large-scale buyout. However, according to The Wall Street publication, the Group has changed its strategy and is using legal loopholes to avoid its commitment.
One of the “victims” of the reneged is the WeWork ex-CEO Adam Neumann, who owns the shares worth US$970 million. The Group, reportedly, is not planning to cancel its commitment to give US$5 billion more to the failing company.
The Securities and Exchange Commission, as well as the Justice Department, have been investigating WeWork. The institutions have requested additional information on the company’s operations and financial strategies.