SoftBank is looking to invest between $3 billion and $4 billion into WeWork. According to a CNBC report, the deal is “close to finalizing”.
At first, there will be a $2 billion primary tranche, followed by a secondary round worth anywhere between $1 and $2 billion. CNBC also says there is a “tender offer” for WeWork insiders, around $44.10 per internal share.
If the deal goes down, WeWork would be valued at more than $20 billion, increasing its value by $3 billion after the last investment round.
WeWork’s spokesperson did not want to comment on the reports, while SoftBank is keeping quiet, at least for the time being.
Tech Crunch, however, says that a source close to WeWork confirmed the talks. SoftBank was also in discussion about the $150 million Series C (2013) and $355 million Series D (2014) rounds, deals that it wasn’t part of.
The SoftBank investment does fall in line with what its CEO Masayoshi Son told Donald Trump last December, when he promised at least $50 billion of investments in the US.
According to the CNBC, WeWork has raised more than $1 billion in the last two years, from companies such as Goldman Sachs, Benchmark and Hony Capital. It currently has more than 150 locations in 15 countries, and expanding rapidly.
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