SoftBank backs away from planned $8.3 billion WeWork bailout package


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SoftBank backs away from planned $8.3 billion WeWork bailout package

Japanese investment conglomerate SoftBank Group Corp. had decided to back away from its slated bailout package for the cash-strapped office space sharing start-up WeWork which Softbank’s Son had to swallow as a bitter pill later last year following a looming cash crunch of the NY-based office space sharing start-up, raising debates further over SoftBank Chair Son’s investment approach towards a slew of loss-making tech start-ups such as WeWork, Uber Technologies, Lyft Inc.

and a many more, a Wall Street report published late on Tuesday, the 17th of March 2020, had revealed citing sources familiar with the issue. Apart from that, Tuesday’s (March 17th) Wall Stree=t Journal report had also added that the Japanese Conglomerate had agreed to purchase $3 billion worth of WeWork shares from its existing stakeholders, while the report was quoted one of the two sources as saying that the Japanese investment conglomerate SoftBank had already delivered a notice to WeWork stakeholders earlier on Tuesday (March 17th).

As a matter of fact, SoftBank’s $10 billion purchase of nearly 79 per cent stake of WeWork including a $1.7 billion payoff to WeWork founder Adam Neumann to step down from the board had led to the SoftBank’s first quarterly loss on Q4, 2019, in more than three years.