SoftBank bails WeWork with fresh $5 billion fund infusion

WeWork received a multi-billion-dollar lifeline from Softbank that will give the Japanese company more control of the troubled property start-up.

Softbank in a statement said it would provide $5 billion (£3.9 billion) in new financing and up to $3 billion for existing shareholders.

The deal will see Softbank increase its stake in the US office-space sharing start-up to roughly 80%.

Once valued at $50 billion the bailout will supply much-needed funds to WeWork and follows the collapse of plans to raise money via a stock market listing.

Co-founder Adam Neumann will leave the board but retain “observer” status and could be handed a sizeable payout of nearly $1.7 billion to leave for good.

The company, which rents shared office space and helped to popularise co-working, has grown from a single office in New York City to more than 500 locations around the world. But it lost about $900m in the first six months of this year.

The firm’s share offering received a lukewarm reaction from investors, who raised concerns about the firm’s financing and governance. WeWork officially dropped the flotation plan last month.

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