Japanese investment firm Softbank could take control of WeWork as part of a financial package to address the company’s cash crunch since its botched effort to sell the public its stock, according to The Wall Street Journal.
The deal would further sideline co-founder Adam Neumann, who resigned as chief executive last month but still wields influence over the company because his shares carry higher voting power.
SoftBank, the office-sharing company’s biggest investor, is aiming to invest several billion dollars in new equity and debt, The Journal reported, citing people familiar with the matter.
WeWork declined to comment on the Softbank package.
In statement, the New York based company said it has retained a major Wall Street institution to arrange financing and was meeting with “60 financing sources.” Softbank declined to comment.