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SoftBank To Take Control Of WeWork In Reported Bailout

In the aftermath of WeWork’s yanked IPO and impending cash crunch, how the company would secure enough capital to stay alive has been a popular Silicon Valley parlor game.

That’s holding up this week, with CNBC reporting that the Japanese conglomerate is ready to “spend somewhere between $4 billion and $5 billion on new funding and existing shares,” a move that would give SoftBank “as much as 70% or more control of WeWork.”

SoftBank, between its own capital pools and its famous Vision Fund, has invested billions already into the troubled giant.

Once valued at $47 billion (by SoftBank itself, it’s worth noting), WeWork’s value has collapsed amidst comical corporate governance, staggering cash burn, stiff operating and net losses, and more.

With its IPO yanked, WeWork won’t likely file new financial results for some time.

WeWork net cash used by investing activities, H1 2019: $2.36 billion

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