SoftBank considering multi-billion dollar WeWork investment

Japanese firm would shell out $2B in first round, second investment could be $2B or more

Japanese telecom giant SoftBank is getting ready to invest more than $3 billion in WeWork, a deal that could value the shared-workspace provider at more than $20 billion.

The investment would come in form of an initial $2 billion of funding, followed by another round worth more than $1 billion, CNBC reported.

SoftBank could increase the second round to more than $2 billion, a source told CNBC, bringing the total investment to nearly $4 billion.

A spokesperson for WeWork [TRDataCustom] would not confirm the details of the deal, and a representative for SoftBank did not immediately comment.

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WeWork is already valued at roughly $17 billion, and over the past two years has raised more than $1 billion from companies such as Goldman Sachs, Benchmark and China-based Hony Capital.

WeWork is transforming its business structure from a typical tech startup to a more corporate form. Earlier this year the company hired the former president of entertainment center Brooklyn Bowl and a former Starwood Property executive to key positions.

The company is considering launching a real estate investment fund, and in July CEO Adam Neumann said WeWork is considering an IPO, but did not give a specific date.

Masayoshi Son, the Japanese billionaire who controls SoftBank, told President Donald Trump in December that he would invest $50 billion in the United States. [CNBC]Rich Bockmann

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SoftBank considering multi-billion dollar WeWork investment

Japanese firm would shell out $2B in first round, second investment could be $2B or more

Japanese telecom giant SoftBank is getting ready to invest more than $3 billion in WeWork, a deal that could value the shared-workspace provider at more than $20 billion.

The investment would come in form of an initial $2 billion of funding, followed by another round worth more than $1 billion, CNBC reported.

SoftBank could increase the second round to more than $2 billion, a source told CNBC, bringing the total investment to nearly $4 billion.

A spokesperson for WeWork [TRDataCustom] would not confirm the details of the deal, and a representative for SoftBank did not immediately comment.

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.

WeWork is already valued at roughly $17 billion, and over the past two years has raised more than $1 billion from companies such as Goldman Sachs, Benchmark and China-based Hony Capital.

WeWork is transforming its business structure from a typical tech startup to a more corporate form. Earlier this year the company hired the former president of entertainment center Brooklyn Bowl and a former Starwood Property executive to key positions.

The company is considering launching a real estate investment fund, and in July CEO Adam Neumann said WeWork is considering an IPO, but did not give a specific date.

Masayoshi Son, the Japanese billionaire who controls SoftBank, told President Donald Trump in December that he would invest $50 billion in the United States. [CNBC]Rich Bockmann

COMPANIES AND PEOPLE

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