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US: SoftBank unveils $9.5B WeWork rescue

 |  October 24, 2019

WeWork has been thrown a multi-billion-dollar lifeline from Softbank that will give the Japanese company more control of the troubled property start-up.

In a statement, Softbank said it would provide $5bn (£3.9bn) in new financing and up to $3bn for existing shareholders. The deal will see Softbank increase its stake in the US office-space sharing start-up to roughly 80%.

Co-founder Adam Neumann will leave the board but retain “observer” status. 

The deal marks the end of a tumultuous period for WeWork – once valued at nearly $50bn – that saw Mr Neumann step down as chief executive as questions over his leadership emerged.

The former boss is expected to be handed a sizable payout. Bloomberg reported the deal could see Mr Neumann receive nearly $1.7bn as he sells his shares in the company and through other fees.

Full Content: Bloomberg

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