SoftBank Close To Invest Over $3 Billion In WeWork
- Author: Zachary Reyes Feb 27, 2017,
Feb 27, 2017, 16:37
It seems that Son is keeping his promise as SoftBank is close to completing an investment in office sharing startup WeWorks, which may be worth over $3 billion.
The investment under discussion is a US$2 billion primary tranche of funding, followed by a secondary round worth more than US$1 billion, CNBC reported, citing a source.
The SoftBank investment does fall in line with what its CEO Masayoshi Son told Donald Trump last December, when he promised at least $50 billion of investments in the US.
SoftBank is being linked with an investment that could value WeWork at more than $20 billion.
According to investors, SoftBank has been in talks with people from WeWork for quite some time with regard to the proposed investment. Later that month, the firm announced plans for its first co-working spaces in Shanghai and Hong Kong. McKelvey further added that the estate rental company will continue to gather capital for expansion purposes ahead of its public listing in some time.
Chinese private equity giant Hony Capital, its backer Legend Holdings and property developer China Oceanwide Holdings, among others, a year ago ploughed $700 million into WeWork.
SoftBank shares fell as much as 2.3 percent in morning trade, compared with a 1.4 fall for the benchmark Nikkei average.
The deal is said to be that Softbank will invest an initial $2 billion and may subsequently invest another $2 billion.
SoftBank, a diverse company that holds stakes in US carrier Sprint, Chinese e-commerce giant Alibaba and other firms, past year bought chip designer ARM Holdings, Britain's most valuable technology company, for $32 billion.