Investments · Shared office space
SoftBank commits another $3 billion to WeWork
- Investor
- SoftBank Group (Tokyo)
- In
- WeWork, New York, New York
- Value
- $3B (warrant at $110 a share)
- Status
- Agreed on November 13, 2018; the money was paid in 2019.
- Date
- 2018-11-13
SoftBank Group, rather than its Vision Fund, agreed to invest another $3 billion in WeWork, the New York shared office company, through a warrant to buy shares at $110 each. The deal valued WeWork at about $42 billion. SoftBank had also put $1 billion into WeWork through a convertible note in August 2018.
Why it matters
The commitment made SoftBank Group itself, and not only its Vision Fund, a growing direct investor in WeWork.
How the money was structured
The $3 billion came as a warrant that let SoftBank buy WeWork shares at $110 each, and the funds were paid in 2019. It was a separate commitment from the Vision Fund's holdings and followed a $1 billion convertible note SoftBank provided in August 2018.
Valuation
The $110 exercise price put WeWork's valuation at about $42 billion. The commitment came from SoftBank Group's own balance sheet rather than from the Vision Fund, which had invested in WeWork separately.
Sources
Kakehashi M&A News home
