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SoftBank Group withdraws $3B WeWork shares purchase


The Japanese investor SoftBank Group has decided not to spend $ 3 billion on the purchase of additional shares from lessor of office space WeWork. The company cut the deal with former WeWork boss Adam Neumann, as well as other shareholders, despite threats of legal action.

SoftBank previously agreed to purchase the shares as part of a rescue package for the company. But in mid-March, it was announced that the conditions for that deal were not met. SoftBank then put an end to the agreement after the deadline expired on Thursday.

SoftBank says it remains fully committed to the success of WeWork and has taken important steps to strengthen the company since October. The group is working on a strategic plan for WeWork with new management. According to the investor, the fact that SoftBank broke the previous deal has no impact on WeWork’s activities or customers.

Until last year, WeWork was known as a growth brilliant. When the company pursued an initial public offering, investors discovered that the company had no clear path to profitability. CEO Neumann was also discredited because, among other things, he gave his family important positions and bought real estate with his own company, which he then resold to WeWork.

Written by: Patrick O'Brien

Patrick O'Brien is a student who is taking only the first steps in journalism. The main interest is events from the world of macroeconomics and finance.

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World, As Seen from the most beautiful islands: Ireland and Cyprus

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