SoftBank rescue plan would bring WeWork’s valuation to $8B

The Japanese conglomerate is vying to push JPMorgan out of a bid to finance the struggling office-space company

SoftBank is considering a financing package to save WeWork that would value the embattled office-space company at $8 billion, according to Bloomberg.

It is a stunning drop from WeWork’s $47 billion valuation set in January by SoftBank, at the time of its last cash infusion. The Japanese conglomerate owns about a third of the company and has already invested more than $10 billion.

Since its failed IPO, which it pulled in September, WeWork now faces the possibility of running out of capital as early as next month.

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JPMorgan, which initially arranged to lead WeWork’s IPO, has also been pitching its board on a separate deal. The bank has reportedly proposed a $5 billion junk-debt deal to investors, with unsecured and secured notes. SoftBank’s pitch is also said to be a $5 billion package, made up of debt and equity.

A decision the competing bids could be decided by WeWork’s board could be made as early as this weekend. [Bloomberg] — David Jeans 

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