SoftBank has made a deal with WeWork, announced the shared workspaces company.
WeWork said that SoftBank will offer a sum of $5bn in the form of new financing as well as around $3bn in the form of one tender offering for the current shareholders. The Japanese multinational conglomerate will speed up a current $1.5bn financing commitment as well, said WeWork in one news release.
After the tender offer and completion of the deal, SoftBank will hold around 80% stakes of WeWork.
In a statement, Masayoshi Son, CEO and Chairman of SoftBank said that SoftBank believes that our world is experiencing an extensive transformation when it comes to the manner people work. And, WeWork stands at the core of such a revolution, Son added.
Son said that the growth challenges of WeWork aren’t uncommon for the leading tech disruptors of the world.
As the vision stays unchanged, Softbank decided to provide a major capital infusion as well as operational support to WeWork, said Son in the statement.
As per the latest deal, WeWork will appoint the COO of Softbank, Marcelo Claure, as an executive chairman to its Board of Directors. Meanwhile, ex-CEO of WeWork, Adam Neumann would be appointed as board observer, said WeWork.