SoftBank may bail on WeWork bailout: report

Company’s largest investor says multiple probes into shared-office giant allow it to renege on commitment

Mar.March 17, 2020 05:43 PM
Former WeWork CEO Adam Neumann and Softbank CEO Masayoshi Son (Credit: Getty Images)

Former WeWork CEO Adam Neumann and Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank no longer plans to proceed with all of its bailout of WeWork, justifying its decision to back out of its $3 billion pledge to buy shares back from investors by citing several regulatory investigations of the troubled shared office–space giant.

According to the Wall Street Journal, WeWork’s shareholders were sent a notice Tuesday stating that SoftBank believes that investigations into WeWork’s business, including probes from the Securities and Exchange Commission and Justice Department, allow SoftBank to walk away from its plan to repurchase shares from investors, including those owned by co-founder and former CEO Adam Neumann.

SoftBank’s reversal is a significant blow to Neumann, who had the right to sell nearly $1 billion in stock as part of an October deal that pushed him out of the company.

SoftBank’s plans to pull the plug on the buyback deal will not affect the commitment it made to give $5 billion to WeWork directly, according to the Journal. [WSJ] — TRD Staff

Related Articles

Sandeep Mathrani and the Four Seasons Residences at The Surf Club (Credit: Four Seasons)

WeWork CEO buys condo at Four Seasons in Surfside

Laura Hines-Pierce and Jeff Hines

Hines CEO talks coronavirus, Opportunity Zones and WeWork

A photo illustration of Pat O’Meara, the historic Security Building at 117 Northeast First Avenue with former WeWork CEO Adam Neumann (Credit: Google Maps, Getty Images, iStock)

Inside the failed crypto auction of a WeWork-leased office tower

Daily Digest Miami

Monroe County seeks $150M to combat sea level rise, Bloomberg’s record may polarize voters

Daily Digest Miami

South Florida home sales struggle in October, Cipriani and Terra plan luxury condo

Daily Digest Miami

Ten-X Commercial laid off half of its workforce, Miami professor who taught class on money laundering allegedly laundered millions

Daily Digest Miami

Compass sweetens agent stock program for 2020, affordable housing project in downtown Fort Lauderdale lands $27M loan: Daily digest

Daily Digest Miami

Panattoni drops $24M to build new industrial project near Opa-locka, One Sotheby’s International Realty acquired Treasure Coast Sotheby’s: Daily digest