Investments · Office space
SoftBank invests $2 billion in WeWork at a $47 billion valuation
- Investor
- SoftBank Group (Tokyo)
- In
- WeWork (The We Company), New York, New York
- Value
- $2B
- Status
- Completed in 2019.
- Date
- 2019-01-08
SoftBank Group invested $2 billion in WeWork, the New York-based provider of shared office space, valuing the company at $47 billion. WeWork renamed its parent company The We Company around the same time. A Refinitiv ranking lists the deal at ¥652.2 billion, a figure that appears to include other components, so the $2 billion headline figure is used here.
Why it matters
The investment raised SoftBank's exposure to a single loss-making start-up at a peak valuation. It set the stage for the much larger rescue package SoftBank put together in October 2019, after WeWork's planned stock market listing was abandoned.
A smaller investment than expected
The $2 billion investment was smaller than the larger stake purchase that had been discussed between the two companies late in 2018. It still lifted WeWork's valuation to $47 billion, making it one of the most valuable private companies in the US at the time. The new parent name, The We Company, reflected plans to expand beyond offices into housing and education.
What followed
WeWork filed for an initial public offering in August 2019 but withdrew it in September after investors questioned its losses and governance. In October, SoftBank agreed to a package of about $9.5 billion that raised its stake to about 80%, and founder Adam Neumann left the board.
Sources
Kakehashi M&A News home
