(Reuters) – WeWork, the board has agreed to a buyout plan proposed by the SoftBank Group, and the handing over of the control of the office-sharing startup, to use the Japanese company, according to a source familiar with the matter.
FILE PHOTO: WeWork’s logo is displayed outside of a co-working space in New York City, New York, New York, USA on January 8, 2019. REUTERS/Brendan McDermid
WeWork, the owner of The board of directors reviews SoftBank’s offer for an alternative means of funding a proposal by JPMorgan Chase & Co (JPM.D), I decided to go with SoftBank, though, the bank, along with a $5 billion debt financing package.
This is a stunning reversal of fortunes for WeWork, which has lost almost $39 billion in value over the past five weeks, during which time it was demolished have been hotly-anticipated public debut, displaced, co-founder, Adam Neumann, CEO and launched a cost-cut plan-after it starts to run out of money.
Reuters reported on Monday that SoftBank had offered a package worth nearly $10 billion worth of WeWork and its shareholders, under a plan to allow the company to survive and to lead to the exit of the Chairman of the Construction.
SoftBank had offered $5 billion in new money, to WeWork, in the form of debt, and it was also proposed to speed up from a prior $1.5 billion of his own equity stake in the form of stock options, which expire in the month of April.
That promise was made in January at a $47-billion valuation, but they turned to the latest rescue package, at a valuation of about $8 billion, according to the source.
The Wall Street Journal reported on Tuesday that under the deal, agreed to by the board of directors, Construction would have to be included in the price of close to $1.7 million due to SoftBank, which will be financed through a new credit facility and the sale of approximately $1 billion of WeWork in stock.
They turned, and a $100 billion Vision to Fund approximately one-third of the WeWork from earlier investments to a total of $10.6 billion.
WeWork does not immediately respond to request for comment.
WeWork left of the initial public offering (IPO) in September, when investors questioned its significant losses, the viability of the business model and the way in which it was carried out by Neumann, who had been the CEO title last month.
Reporting by Greg Roumeliotis and Joshua Franklin in New York, and Anirban Sen in Bangalore; Editing by Patrick Graham and Arun Koyyur