WeWork and SoftBank have announced a deal in which the Japanese technology giant buys out about 80 percent of the invested real estate company. Marcelo Claure, the former CEO of Sprint – who took over SoftBank in 2012 – will become the new executive chairman of WeWork. Adam Neumann, the founder and CEO who receives more than a billion dollars to leave, becomes a "non-voting" observer. Artie Minson and Sebastian Gunningham remain co-CEOs of WeWork.
SoftBank is already WeWork's largest investor for more than $ 10 billion. The new deal includes $ 5 billion in further financing, $ 1.5 billion already pledged for the future, and a $ 3 billion bid for existing shareholders outside of SoftBank. However, WeWork claims that SoftBank will not have a majority of voting rights at a business meeting, so that it is an & # 39; associated & # 39; instead of being a subsidiary.
SoftBank CEO and Chairman Masayoshi Son downplayed the nature of what really can only be described as an extraordinary rescue operation. "It's not uncommon for & # 39; the world's leading technology disruptors to experience growth challenges as WeWork has just faced," Son said in a pronunciation. "Because the vision remains unchanged, SoftBank has decided to double the company by offering a substantial capital injection and operational support."
In recent years, Son has become an even bigger player in technical investments with the colossal Vision Fund of SoftBank, which means that huge deals have been concluded that nobody else can beat. This latest injection of liquidity suggests a certain degree of confidence in WeWork's long-term outlook, which would put Son out of step with the broader investment community; WeWork was forced to cancel its IPO after investors had discarded the details in its S-1 deposit.