SoftBank wants to be in control of WeWork, through a financing package-WSJ

FILE PHOTO: A man walks into a WeWork space in the borough of Manhattan in New York City, New York, New York, USA, October 4, 2019. REUTERS/Carlo Allegri/Photo File

(Reuters) – SoftBank Group Corp. (A). (9984.(T), it is ready for a funding package for the WeWork Companies Inc., which provides for the control of the shared office space business, the Wall Street Journal reported.

The package would be to substantially increase the participation of SoftBank, which already owns about a third of WeWork, and will continue to dilute the impact of the co-founder, Adam Neumann, the Journal reported.

Reuters earlier reported that SoftBank was in negotiations to create a $1 billion investment as well as you, WeWork has to go through a major restructuring.

WeWork has been working with JPMorgan Chase & Co (JPM.(N) in terms of the $3 billion of debt, the deal after a planned initial public offering has been filed within the last month, as investors worried about how he was being valued and its business model, sources have told Reuters.

WeWork, a net loss of $1.9 billion in 2018, and it burned up due to $ 2.36 billion in cash in the first six months of this year, and it could run out of cash during the second quarter of 2020 and at the current burn rate, according to an analysis last week by the securities house, Sanford C. Bernstein & Co.,

In the past few weeks, the global credit rating agencies-Standard & Poor’s ratings service and Fitch Ratings have also downgraded WeWork’s credit ratings deeper into junk territory, while the company’s junk bond is trading at an all-time low.

WeWork last month to replace a co-founder of Stand down as CEO, insiders Artie Minson, and Sebastian Gunningham participate in joint CEO roles.

The pair have spoken about the need to return to the WeWork is the core business of the hiring out of a trendy office space for freelancers and companies. That would be to pull the company back from the secondary Construction had forayed into, such as schools, apartment buildings, and businesses.

Report by Carl O’donnell; Editing by Daniel Wallis

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