New York (dpa) - The office space provider WeWork has been rescued as expected by its major shareholder Softbank after the ruptured IPO.
The Japanese technology investor is pumping another $ 9.5 billion on new loans and the purchase of shares in the loss-making and money-making business.
Softbank will hold 80 percent in weworks as soon as the various financial transactions, such as new loans over five billion euros and the share purchase of existing shareholders such as the recently retired from the chief executive Adam Neumann co-founder Adam Neumann. This was reported by WeWork and Softbank in New York and Tokyo.
Softbank and its Saudi-backed funds Vision Funds have already invested $ 9 billion in WeWork, holding 29 percent of the company's IPO records.
As part of the new cash injection from Japan, WeWork is valued at only $ 8 billion, making it only a fraction of what the company was worth at the beginning of the year. According to the US media, the company, which was founded in 2010, was one of the most valuable start-ups in the world with a valuation of 47 billion dollars in January. But this high valuation could not be realized through an IPO.
Neumann's ambitious stock market plans failed miserably in September. In addition, the operating business remains deeply in the red and the money has recently become very scarce. By the end of the year, the coffers would have been empty without the new money from Japan. For Neumann the WeWork takeover by Softbank is probably provided with a golden handshake. According to information from the news agency Bloomberg he may sell shares in the course of the deal for up to one billion dollars to Softbank, also gets a million-dollar loan and advisory fees in the three-digit millions.
For Softbank shareholders, the decline of WeWorks is not good news. The share price of the company, which is also active in Wirecard among other things, dropped by more than three percent to 4164 yen after the announcement of the new billion-dollar injection. The share thus built up its losses in recent months. In April, the paper had cost nearly 6,000 yen.