SoftBank can invest up to $ 20 billion in New York coworking network
Japanese telecommunications company SoftBank plans to invest from $ 15 billion to $ 20 billion in New York coworking startup WeWork in exchange for a controlling stake in the company. This was reported by the newspaper The Wall Street Journal, citing sources.
The transaction will be financed from the reserves of Vision Fund - a fund created by SoftBank with the participation of sovereign funds of Saudi Arabia and Abu Dhabi, as well as other investors. The fund specializes in technology investments and already owns 20% in WeWork . For the first time, SoftBank invested in a startup through the Vision Fund in August 2017. Then WeWork received $ 4.4 billion in equity financing, in August of this yearanother $ 1 billion, placing subordinated convertible bonds in favor of SoftBank.
WeWork, created in 2010, creates workspaces for businessmen. The company leases more than 265,000 offices in 287 buildings. According to Cushman & Wakefield, it takes up more office space in Manhattan than any other company. Since its inception, the startup has attracted more than $ 6 billion. In addition to SoftBank, the venture capital fund Benchmark, the Chinese company Hony Capital and the division of JPMorgan Chase & Co. were invested in it. in asset management.