SoftBank Considers Majority Stake in WeWork, Report Says
The Japanese group might invest $15 billion to $20 billion in the co-working company, the Wall Street Journal reported
SoftBank is in talks to invest $15 billion to $20 billion in co-working company WeWork and become its majority stakeholder, the Wall Street Journal reported Tuesday, citing people familiar with the matter.
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In August 2017, SoftBank announced a $4.4 billion investment in WeWork via Vision Fund, a global technology investment fund established in partnership with the Public Investment Fund of Saudi Arabia. 2017's investment gave SoftBank a stake of almost 20% in the co-working juggernaut.
Since it was founded in 2010, WeWork has raised over $6 billion. Today the company operates co-working spaces in around 80 cities worldwide, with almost 270,000 global members. According to documents published by Bloomberg in June, WeWork saw $886 million in revenues for 2017, double its 2016 revenues, and $1.5 billion in investment expenses. The company also reported losses of $934 million, and $18 billion in lease obligations.
According to the WSJ, there is no guarantee that the talks between SoftBank and WeWork will pan out.