SoftBank clinches deal to take over WeWork; pays off Neumann to step down


by   |  VIEW 157
SoftBank clinches deal to take over WeWork; pays off Neumann to step down

SoftBank Group, the Japanese multinational conglomerate holding company, headquartered in Tokyo, had arrived at a decision to spend more than $10 billion in a bid to acquire the online office-space sharing company, WeWork, almost doubled up the initial bid to take control of an ill-fated investment while laying off an additional amount in cash to co-founder Adam Neumann to renounce control, people directly briefed over the subject-matter had unveiled late on Tuesday, the 22nd of October 2019, on condition of anonymity.

In point of fact, latest development on clinching an acquisition deal for the US-based office-space sharing company, WeWork, owned by one of the US real estate majors, The We Company, comes over the heels of yesterday’s (October 21st) media reports revealing that the company would be running out of cash as early as by next month.

Meanwhile, the management board of The We Company was set to hold a meet to assess on whether it would explore a sell-off option amid a tortuous fund-crises against a debt-lifeline of a hefty sum of $5 billion from JPMorgan Chase & Co.

Nonetheless, latest backlash for the WeWork, which would be sold to SoftBank as sources revealed, came forth as the SoftBank Chief Executive, Masayoshi Son seemed to be convinced the WeWork stakeholders about participating in its second Vision Fund, for which the Japanese investment mammoth had been seeking to raise roughly $108 billion.

Besides, the sources had also revealed that the SoftBank co-founder Neumann had grabbed a $685 million side deal offered by SoftBank to step down from the board of WeWork’s parent organization, The We Company, while thousands of WeWork employees appeared to be facing off an imminent prospect of layoffs.