SoftBank mulls new investment to avoid WeWork liabilities

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SoftBank mulls new investment to avoid WeWork liabilities

The Japanese investment conglomerate, SoftBank Group Corp., had been exploring an option to become the majority stake-holder of online office-space sharing company WeWork, currently owned by the US-based real estate major, NY-based The We Company, without taking into account the uphill battles alongside lease obligations it would have to grapple with, at least three people directly familiar with the subject-matter had unveiled on Sunday, the 20th of October 2019, on condition of anonymity as the sources were not authorized to speak over the issue on public.

If truth is to be told, the online office sharing startup, had been scuffling over the recent months following delaying its IPO given the scale of downsizing it had witnessed in market valuation, while a resignation of its founder later last month added further strains into the company.

In point of fact, a number of analysts alongside investors expressed sheer concerns over its slated path towards profitability which in effect had curbed its approximated market valuation to $10 billion from $47 billion in January this year.

Meanwhile, in order to avert a hefty sum in liabilities, the Japanese investment conglomerate, SoftBank had been proffering a $5 billion lifeline to The We Company, parent organization of WeWork, against a debt proposal of similar size from leading US lender JPMorgan Chase & Co.