Report: SoftBank to take control of WeWork
Illustration: Sarah Grillo/Axios
Japanese investment firm SoftBank is set to take control of WeWork in a deal that slashes the co-working company's valuation from $48 billion to around $8 billion, according to CNBC. WeWork is declining comment, and there is subsequent reporting that the company is still deciding between SoftBank's offer and a debt package led by J.P. Morgan.
Why it matters: SoftBank helped break WeWork. Now it may own it.
- CNBC reports that SoftBank will invest between $4 billion and $5 billion as part of the deal.
- It is unclear if that money is included in the reported valuation, or if the valuation is pre-money.
- SoftBank originally invested in WeWork three years ago at around a $21 billion valuation, before later investing at a $47 billion valuation. That first deal came via SoftBank's $100 billion Vision Fund, while the latter came from its balance sheet.
Go deeper: SoftBank's complicated Vision Fund