WeWork announced Tuesday that SoftBank will provide $5 billion in new financing and up to $3 billion in a tender offer for existing shareholders.
that Japanese conglomerate SoftBank will provide $5 billion in new financing and up to $3 billion in a tender offer for existing shareholders. SoftBank will also speed up an existing $1.5 billion financing commitment.
After closing, and following the tender offer, SoftBank's fully diluted economic ownership of WeWork will be approximately 80%. WeWork also said it will appoint SoftBank Chief Operating Officer Marcelo Claure as its executive chairman while former WeWork CEO Adam Neumann will become a "board observer" as the company expands the panel of directors and receives voting control over his shares, the company said.
Revelations that WeWork was about one week from running out of cash comes on the heels of a slew of bad news for the company since it released its IPO prospectus in August. Its government filing revealed a massive $900 million loss in the first six months of 2019. It also reported at the time that it had long-term lease obligations of $17.9 billion.
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