H L Data Storage Store Banner 970x90
Breaking News

TERRAMASTER INTRODUCES REDESIGNED F8-422 8-BAY NAS WITH 10GBE NETWORKING TAMRON announces world's first compact, lightweight F2.8 ultra wide-angle zoom lens for Sony E-mount APS-C mirrorless cameras TAMRON announces compact 500mm ultra-telephoto zoom for Sony E-mount full-frame mirrorless cameras Sony introduces new X-Series range with 3 new powerful wireless speakers All-new iMac features stunning design in a spectrum of vibrant colors, the breakthrough M1 chip, and a brilliant 4.5K Retina display

logo

  • Share Us
    • Facebook
    • Twitter
  • Home
  • Home
  • News
  • Reviews
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map

Search form

SoftBank Officially Takes Over WeWork

SoftBank Officially Takes Over WeWork

Enterprise & IT Oct 23,2019 0

Confirming yesterday's reports, WeWork announced on Wednesday that it had accepted a $9.5 billion rescue package from Japan's SoftBank Group that would give its biggest investor an over 80% economic interest in the troubled company but not voting control.

As part of the agreement, SoftBank commits to provide significant funding to the WeWork. This includes $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. The funding provides WeWork with significant liquidity to execute its business plan to accelerate the company’s path to profitability and positive free cash flow.

After closing, and following the tender offer, SoftBank’s fully diluted economic ownership of WeWork will be approximately 80 percent. Since SoftBank will not hold a majority of voting rights at any general stockholder meeting or board of directors meeting and does not control WeWork, the company will not be a subsidiary of SoftBank.

The rescue package marks the end of an era for WeWork, which was forced to pull a planned public share offering last month and is now valued in the bailout at around $8 billion, versus the $47 billion that a fund-raising valued it in January.

“SoftBank is a firm believer that the world is undergoing a massive transformation in the way people work. WeWork is at the forefront of this revolution. It is not unusual for the world’s leading technology disruptors to experience growth challenges as the one WeWork just faced. Since the vision remains unchanged, SoftBank has decided to double down on the company by providing a significant capital infusion and operational support. We remain committed to WeWork, its employees, its member customers and landlords,” said Masayoshi Son, Chairman & CEO of SoftBank Group Corp.

WeWork founder Adam Neumann will meanwhile leave the company's board, to be replaced by SoftBank executive and newly appointed Executive Chairman Marcelo Claure.

Neumann, who will remain a "board observer", will also walk away with almost $1 billion in cashed-out stock that he can sell into the tender offer, plus, according to multiple reports, a $500 million credit line from SoftBank to repay a credit facility led by JP Morgan, and a roughly $185 million consulting fee.

Tags: softbankWeWork
Previous Post
Tesla Returns to Profitability, Trials of Full Self-driving Package Coming This Year
Next Post
Samsung Announces First 24Gb LPDDR4X Chips, Exynos 990 Mobile Processor, 10nm DRAM, 7th-generation V-NAND and the 5G Exynos Modem 5123

Related Posts

  • SoftBank Reports $18 Billion Loss from Vision Fund

  • SoftBank Sees $7-billion Full-year Net Loss

  • WeWork Sues SoftBank After $3-billion Tender Offer Collapses

  • SoftBank Cancels $3 billion WeWork Tender Offer

  • SoftBank Unveils $41 Billion Asset Sale Plan

  • Alphabet’s Loon and SoftBank’s HAPSMobile Complete Development of Communications Payload for HAWK30 Aircraf

  • SoftBank Reports $6.5 Billion Loss From Uber, WeWork

  • SoftBank Launches New $108 Billion "Vision Fund 2"

H L Data Storage Store Banner 300x600

 

Latest News

TERRAMASTER INTRODUCES REDESIGNED F8-422 8-BAY NAS WITH 10GBE NETWORKING
Enterprise & IT

TERRAMASTER INTRODUCES REDESIGNED F8-422 8-BAY NAS WITH 10GBE NETWORKING

TAMRON announces world's first compact, lightweight F2.8 ultra wide-angle zoom lens for Sony E-mount APS-C mirrorless cameras
Cameras

TAMRON announces world's first compact, lightweight F2.8 ultra wide-angle zoom lens for Sony E-mount APS-C mirrorless cameras

TAMRON announces compact 500mm ultra-telephoto zoom for Sony E-mount full-frame mirrorless cameras
Cameras

TAMRON announces compact 500mm ultra-telephoto zoom for Sony E-mount full-frame mirrorless cameras

Sony introduces new X-Series range with 3 new powerful wireless speakers
Consumer Electronics

Sony introduces new X-Series range with 3 new powerful wireless speakers

All-new iMac features stunning design in a spectrum of vibrant colors, the breakthrough M1 chip, and a brilliant 4.5K Retina display
Enterprise & IT

All-new iMac features stunning design in a spectrum of vibrant colors, the breakthrough M1 chip, and a brilliant 4.5K Retina display

Popular Reviews

CeBIT 2005

CeBIT 2005

Zidoo Z9S 4K Media Player review

Zidoo Z9S 4K Media Player review

CeBIT 2006

CeBIT 2006

LiteOn iHBS112 review

LiteOn iHBS112 review

Club3D HD3850

Club3D HD3850

Crucial P1 NVMe 1TB SSD review

Crucial P1 NVMe 1TB SSD review

Hitachi DZ-MV100A DVD Camcorder

Hitachi DZ-MV100A DVD Camcorder

Toshiba Exceria M303 64GB and M501 Exceria Pro 64GB MicroSDXC review

Toshiba Exceria M303 64GB and M501 Exceria Pro 64GB MicroSDXC review

  • Home
  • News
  • Reviews
  • Forum
  • Legacy
  • About
    • Submit News

    • Contact Us
    • Privacy

    • Promotion
    • Advertise

    • RSS Feed
    • Site Map
  • About
  • Privacy
  • Contact Us
  • Promotional Opportunities @ CdrInfo.com
  • Advertise on out site
  • Submit your News to our site
  • RSS Feed