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SoftBank Is Backing Away From $3B WeWork Bailout: Report

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SoftBank Is Backing Away From $3B WeWork Bailout: Report

SoftBank Group Corp. (OTC: SFTBY) is backing away from a $3-billion bailout of WeWork shareholders, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

WeWork's Failed IPO 

In August 2019, WeWork had filed S-1 paperwork and planned to list on the Nasdaq. In September, WeWork withdrew its S-1 filing and announced the postponement of its initial public offering.

WeWork co-founder Adam Neumann stepped down from the position of CEO in September.

It is estimated that Softbank gave a $5-billion lifeline directly to WeWork.

SoftBank Eyes Investigations Of WeWork

SoftBank sent a notice to WeWork shareholders Tuesday that said the regulatory probes into the business, including those by the Securities and Exchange Commission and Justice Department, allow it to back out of a deal to buy $3 billion in WeWork shares from existing investors, the Journal reported. 

Over-the-counter SoftBank shares were trading down 12.22% at $14.94 at the time of publication Wednesday. 

Related Links:

WeWork Withdraws IPO

WeWork's We Company To List On Nasdaq

Photo courtesy of WeWork. 

 

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