- SoftBank has backed off its plans to invest an additional $US16 billion into the privately held workspace startup WeWork, according to the Financial Times.
- Instead, the Japanese tech company will invest just $US2 billion, according to the report. The deal has not yet been finalised.
- SoftBank’s initial plan, reported in October, would have given it a majority stake in WeWork. But the size of the deal reportedly upset some of its biggest financial backers in Saudi Arabia and Abu Dhabi.
SoftBank has backed away from its plan to invest $US16 billion into the shared-workspace company WeWork, according to Financial Times.
Instead, SoftBank will invest just $US2 billion, according to Financial Times, which said WeWork and SoftBank are late in the negotiation process. The deal is expected to be announced early next week, though it has not been finalised, according to the report, which cites anonymous sources.
SoftBank has already invested $US8 billion into the startup.
SoftBank’s plan to invest $US16 billion into WeWork was first reported by The Wall Street Journal back in October.
That investment would have given the Japanese tech company a majority stake in WeWork. But SoftBank CEO Masayoshi Son reportedly faced criticism from the company’s biggest backers in Saudi Arabia and Abu Dhabi over the size of the deal.
Under the new terms, the deal will not include money from the SoftBank Vision Fund, the investment arm of the company which backed the majority of its existing $US8 billion investment.
A WeWork spokesperson declined to comment on the report. SoftBank did not immediately return requests for comment.