SoftBank Corp has reportedly invested another $3 billion in financing into the co-working major WeWork. The deal comes in the form of a warrant, allowing SoftBank to pay $3 billion for the opportunity to buy shares before September 2019 at a price of $110 or higher.
This will value WeWork at $42 billion minimum. In August, SoftBank Corp invested $1 billion in WeWork in the form of a convertible note. Following this deal, SoftBank will pay WeWork $1.5 billion on January 15, 2019 and another $1.5 billion on April 15.
SoftBank is far and away WeWork’s biggest investor, with SoftBank Vision Fund having poured $4.4 billion into the company just last year.
More than physical land, WeWork wants to be the central connective tissue for work in general. The company often strikes deals with major service providers at ‘whole sale’ prices by negotiating on behalf of its 300,000 members.
Also, the company has developed enterprise products for large corporations, such as Microsoft, who tend to sign longer, more lucrative leases. In fact, these types of deals make up 29 percent of WeWork’s revenue.