SoftBank considering majority stake in WeWork

SoftBank Group, operator of the world’s largest private equity fund, is considering a majority stake in office space firm WeWork, according to The Wall Street Journal
WeWork is a startup, valued at around US$40bn, focused on providing shared office spaces for tech firms, as well as providing services for SMEs, large companies, entrepreneurs, and freelancers.
WSJ’s report said that the investment would fall between $15bn and $20bn and that the financing would likely come from SoftBank’s Vision Fund.
The Vision Fund’s $4.4bn investment in WeWork last year secured two seats on the startup’s board alongside a minority stake.
According to Reuters, its source said that there are currently no concrete plans or pricing strategies in place for the potential investment.
See more:
It added that SoftBank’s shares dropped by 5.4% on 10 October and that this was likely triggered by concerns over WeWork’s prospects.
WeWork itself is currently operating at a loss, and its performance is tied firmly to the state of the real estate market.
Reuters noted that a majority stake in WeWork would be a departure from SoftBank’s usual investment practise of taking minority stakes in strong, late-stage startups that offer less risk.
It cited its investments and minority stake in Uber as an example of the firm’s usual method.

Featured Articles

Top 10 fastest growing companies in Asia-Pacific

From Singapore to South Korea, Hong Kong to India, and spanning fintech, food and energy – these 10 businesses are seeing their revenues rise, and fast

Top 10 best-performing Australian companies: mines to banks

Among Australia’s largest companies by market cap are the country’s Big Four banks, a tech startup that successfully scaled, and two firms with female CEOs

Top 10 richest Southeast Asia: how they made their fortunes

From Singapore’s paint tycoon to Malaysia’s sugar king, we round up the 10 richest people in Southeast Asia – and investigate how they made their billions

Will moonlighting ever become accepted practice in India?

Human Capital

New YouTube CEO Neal Mohan joins surge of Indian-origin CEOs

Leadership & Strategy

Ex Infosys President Ravi Kumar is the CEO Cognizant needs

Leadership & Strategy