Illustration: Aïda Amer/Axios
WeWork said in a statement Wednesday it has accepted a multibillion-dollar rescue package from SoftBank that gives the Japanese firm an 80% stake in the company.
Why it matters: Per Axios' Dan Primack, who first reported that the deal was about to happen, it'a dramatic development in a "saga that has seen the embattled company plunge from a $47 billion valuation to below $8 billion."
What's happening: WeWork said SoftBank had committed to providing significant funding, including "$5 billion in new financing and the launching of a tender offer by SoftBank of up to $3 billion for existing shareholders."
- "Additionally, SoftBank will be accelerating an existing commitment to fund $1.5 billion," WeWork said.
- WeWork founder and non-executive chairman Adam Neumann will become a "board observer." The size of the board will be expanded, and it will receive voting control over Neumann’s shares.
What's next: WeWork said its board would appoint SoftBank Group Corp. COO Marcelo Claure executive chairman of the WeWork board of directors, "effective upon closing of the accelerated $1.5 billion payment commitment."
Go deeper: How SoftBank plans to save WeWork
Editor's note: This article has been updated with new details throughout.