SoftBank considering majority stake in WeWork

 

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.

 

 

 

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.