On-demand workspace provider WeWork secured a $3 billion investment from SoftBank Corp. in the form of a warrant, reports said on Tuesday (Nov. 13), just months after SoftBank invested $1 billion in the firm via a convertible note.
SoftBank's investment allows the company to purchase shares before September 2019 at $110 each or higher. Reports said the deal values WeWork at $42 billion.
The warrant follows another investment in the firm from SoftBank's investment unit, SoftBank Vision Fund, to the tune of $4.4 billion last year.
Growth in WeWork has been driven by its ability to land large deals with service providers to secure wholesale prices for its users, reports noted. The company has also broadened its service offerings through the development of enterprise solutions for some of its largest corporate clients, including Microsoft. According to reports, this area of WeWork's operations now makes up 29 percent of its revenue.
SoftBank Corp.'s investment came after Bloomberg reported last month that the Japanese company was rumored to be planning such a deal in pursuit of a majority stake in the company.
Meanwhile, in addition to new product development, WeWork has been making its own investments. Most recently, the firm reached a deal to acquire Teem, which sells office management solutions.
"Acquiring Teem means bringing in a talented group of over 100 people to help us create a better, more efficient workplace experience for enterprises around the globe," said WeWork Chief Product Officer Shiva Rajaraman in a statement last month. "We are committed to helping companies deliver an amazing employee experience every day and everywhere. Teem moves us one step closer to that reality, and we are thrilled to welcome them into our WeWork family."
Other workspace sharing startups have secured funding as of late, including MyDreamPlus and Ucommune, both based in China, which each received funding in August.