Featured Posts

SoftBank To Take Control Of WeWork With $6.5 Billion Bailout

October 21, 2019

Less than a week we reported that according to the Nikkei, Softbank was set to provide WeWork with a $5 billion bailout loan, one which we dubbed tongue in cheek a pre-petition DIP loan.

 

It now appears our assessment was accurate, because moments ago CNBC's David Faber confirmed that WeWork appears to have snubbed a debt deal being arranged by JPM (arguably due to its exorbitant interest rate which was rumored to be between 8% and 15%), and was instead set to hand over control to Japan's venture capital debacle, SoftBank, which is set to spend $4-5 billion on new WeWork equity, in a deal which values WeWork around $8 billion (we suppose this is premoney valuation), and which together with WeWork's existing ownership, would grant SoftBank full control over the flaming fiasco that is WeWork, whose valuation has crashed from $47BN a few months ago to less than $8BN.

 

FULL REPORT

Share on Facebook
Share on Twitter
Please reload

Please reload