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Soft bank to take control of WeWork: Sources

Soft Bank is in the last stage of negotiations over taking control of WeWork a workspace company according to some inside sources. The Japanese investment bank will spend anywhere between $ 4 billion to $5 billion on the funding the company and its shares.

The deal is expected to come out any day now. Through this deal, the investment bank will take control of the company. If the deal is finalized then Soft Bank will acquire as much as 70% ownership in the company. Soft Bank has planned to a $ 3 billion tender offer along with $ 1.5 billion infusions into the equity and will spend another $ 5 billion in syndicated debt. It hopes that the cash infusion will improve the cash flows of the company and become profitable.

This is not the first time that Soft Bank is investing in the company. Prior to this, the company had spent $ 10.65 billion in the space sharing company already. This funding is being done for the debt restructuring of the space sharing company. If the deal closes successfully then Marcelo Claure will be one of the members in the management as a chairman. Adam Neumann, the former CEO of the company will have his share in the company reduced to as low as low double digits.

The company cancelled its plans to go public this year. The IPO prospectus showed that the company had lost more than $ 900 million in the first half of 2019. This also drew the attention of the public to the corporate governance policies of the company.

Last month Neumann left the company and since then WeWork is focused on raising capital. Earlier the company had been in talks with J.P. Morgan for debt financing. The company is reported to have fired more than 13% of its staff since last week.

Robert Espinosa
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EDITOR & AUTHOR At The Industry Research 24

Robert Espinosa is a well-disciplined and punctual personality in The Industry Research 24’s Science division. He has earned respect in his team as well as overall The Industry Research 24 organization by showing his excellent managerial and interpreting abilities. Robert has a strong quality to present each and every news report in an easy-to-understand manner. At the same time, he makes sure that all the content on our Science section can be comprehended by readers of all types. While he pursued a Bachelor of Arts Degree with a Major in Astronomy, he has proved himself as a successful Head of The Industry Research 24’s Science Department from last 2 years.

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