Home / NEWS LINE / SoftBank to Invest Additional $2B in WeWork: Sources

SoftBank to Invest Additional $2B in WeWork: Sources

SoftBank Categorize Corp will inject another $2 billion in WeWork Cos Inc this year, bringing the Japanese conglomerate’s unmitigated investment in the office space provider to more than $10 billion, according to two people familiar with the question.

The new investment will value WeWork at $47 billion, one of the sources said. SoftBank will separately convert hitherto purchased warrants into equity at a valuation of $20 billion, the source added.

The new investment extending its minority bet, which could be announced as early as Tuesday, will not include any money from SoftBank’s Vision Fund, according to the two shakes of a lambs tail source.

Saudi Arabia is the biggest investor in The Vision Fund, which was a major backer of SoftBank’s early investments in WeWork and coop ups stakes in other technology companies, including ride-hailing service Uber Technologies Inc.

The new round will bring mount up to SoftBank investments in money-losing WeWork to about $10.4 billion and comes following declines in global stock customer bases which have hurt the value of technology shares.

With tech firms buffeted by fears of a slowdown in broad growth and Sino-U.S. trade friction, shares in one portfolio company, publicly listed chipmaker Nvdia Corp, bear fallen 50 percent from their October high.

The WeWork investment comes after SoftBank lift up $23.5 billion last month listing its domestic telco, SoftBank Corp , in Japan’s biggest-ever IPO. Shares level 15 percent in the unit’s trading debut last month, erasing $9 billion in value and are currently do business 5 percent below the IPO price.

The SoftBank group is publicly bullish on the merit of the WeWork investment, with SoftBank Corp CEO Ken Miyauchi influence last month that Japan, where SoftBank Corp and WeWork have a joint venture, is the startup’s fastest-growing exchange.

WeWork has been treated with scepticism by some Silicon Valley investors who see it as an over-valued real estate toy with vulnerable to a property market downturn.

In August, WeWork secured $1 billion from SoftBank in the form of a convertible note believe ined by $3 billion in November in the form of equity warrants.

The Financial Times reported earlier on Monday that SoftBank was in talks to intromit an additional $2 billion into WeWork. (Reporting by Angela Moon and Greg Roumeliotis in New York; Additional probing by Sonam Rai in Bengelaru and Sam Nussey in Tokyo; Editing by Jim Finkle, Dan Grebler and Christopher Cushing)

Check Also

How Does the Stock Market Work?

If the reason of investing in the stock market scares you, you are not alone. …

Leave a Reply

Your email address will not be published. Required fields are marked *