SoftBank to invest additional $2bn in WeWork

TOKYO: SoftBank Group Corp will inject another $2 billion in WeWork Cos Inc this year, bringing the Japanese conglomerate’s total investment in the office space provider to more than $10 billion, according to two people familiar with the matter.
The new investment will value WeWork at $47 billion, one of the sources said. SoftBank will separately convert previously purchased warrants into equity at a valuation of $20 billion, the source added.
The new investment extending its minority stake, which could be announced as early as Tuesday, will not include any money from SoftBank’s Vision Fund, according to the second source.
Saudi Arabia is the biggest investor in The Vision Fund, which was a major backer of SoftBank’s early investments in WeWork and holds stakes in other technology companies, including ride-hailing service Uber Technologies Inc.
The new round will bring total SoftBank investments in money-losing WeWork to about $10.4 billion and comes following declines in global stock markets which have hurt the value of technology shares. — Reuters