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.
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