SoftBank seeks to avoid WeWork's liabilities with new investment: sources

) is attempting to become the majority owner of WeWork without assuming the onerous lease obligations of the U.S. office-space sharing firm, according to people familiar with the matter.

WeWork could run out of cash as early as next month without new financing, sources have said, after the company pulled plans in September for an initial public offering . It abandoned the IPO when investors questioned its large losses, the sustainability of its business model and the way WeWork was being run by its co-founder and former CEO Adam Neumann, who now serves as board chairman.

SoftBank’s latest offer values WeWork at less than $10 billion, according to two of the sources, a fraction of the $47 billion it assigned to it in January in a previous fundraising round.While the split in SoftBank’s contribution between equity and debt is still being negotiated, its investment could make it the majority owner of WeWork. Were this to translate to formal voting control for SoftBank, it could force it to consolidate the loss-making company on its balance sheet, the sources said.

One way for SoftBank to avoid assuming formal control of WeWork that would lead to accounting consolidation would be to accept nonvoting stock for any equity investment. However, it is not clear how SoftBank plans to structure the deal. Job cuts in the United States could come in the first week of November, one of the sources said. There are also expected to be job losses in other parts of the world, the source added.

The board committee’s advisers include investment bank Perella Weinberg Partners LP and law firms Skadden, Arps, Slate, Meagher & Flom LLP and Wilson Sonsini Goodrich & Rosati, one of the sources said.

Hahaha throwing good money after bad.. the ya re just doing it so they can show that vision fund did not get decimated in this deal

WEWORK $WE MAYBE IM WRONG WHICH IS UNLIKELY BUT THIS ARTICLE SAYS ITS LEASE OBLIGATIONS ARE 18 BILLION THATS NOT CORRECT ITS 47 BILLION

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Real estate mogul Barry Sternlicht: WeWork went 'off the rails' but it's still a 'real company''It was built for hyper growth and that is too capital intensive,' says the Starwood Capital founder.
출처: CNBC - 🏆 12. / 72 더 많은 것을 읽으십시오 »

Adam Neumann told staff earlier this year his family had 100% control of WeWork and even in 300 years, his descendants would be in control as 'the moral compass of the company'In a leaked video obtained by MeghanEMoriss, Adam Neumann told staff earlier this year that his family had 100% control of WeWork and even in 300 years, his descendants would be in control as 'the moral compass of the company' clusterstock A lie of course Ok seriously ... Where is this guy getting his stash? It's clearly Seriously better than what I've got (which is excellent). I want to try whatever he's doing, because, damn.
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »

WeWork's valuation could reportedly slip below $8 billion as part of SoftBank's proposed bailout of the embattled companySoftBank is reportedly eyeing a plan to rescue WeWork that would value the company below $8 billion, according to Bloomberg. Should be valuation of $2bn. He's sinking more good money after bad. 彼にはどんな未来が見えてるのだろう 😳
출처: BusinessInsider - 🏆 729. / 51 더 많은 것을 읽으십시오 »