Sunday, June 23

Tag: WeWork

Softbank Puts $9 Billion Losses as Vision Fund Investments Plunge
BUSINESS

Softbank Puts $9 Billion Losses as Vision Fund Investments Plunge

Japanese tech company SoftBank Group racked up a loss of 961.6 billion yen (USD 9 billion) for the fiscal year through March, on red ink related to its Vision Fund investments including troubled office space-sharing venture WeWork. SoftBank, founded in 1981, said the drop in share prices around the world from the fallout of the coronavirus pandemic had slammed the value of its sprawling investments. Tokyo-based SoftBank had reported a profit of 1.4 trillion yen the previous fiscal year. Its sales for the fiscal year inched up 1 per cent to 6.2 trillion yen (USD 58 billion). It did not immediately break down quarterly results or give a forecast for the fiscal year through March 2021. On top of WeWork's poor performance, the company suffered damage to the value of Uber and other ho...
SoftBank Group Forecasts USD 7bn Net Loss in 2019 Financial Year
News

SoftBank Group Forecasts USD 7bn Net Loss in 2019 Financial Year

Japanese conglomerate SoftBank Group forecast a USD 7-billion net loss for the year ended March due to the negative impact of coronavirus and losses related to WeWork. The group led by Masayoshi Son said in a press release, "It also expected to suffer an operating loss of 1.35 trillion yen or USD 12.5 billion." The firm cited a 1.8 trillion yen loss at its SoftBank Vision Fund, blaming "the deteriorating market environment" in the wake of the global coronavirus pandemic. As well as killing more than 100,000 people globally, the virus has tipped the world into what many predict will be a Great Depression, and markets have been in free-fall, battering the group's investments. Under Son's leadership SoftBank Group has morphed into an investment and technology firm, and its $100-b...
WeWork sues SoftBank for backing out of $3 billion Investment deal
BUSINESS

WeWork sues SoftBank for backing out of $3 billion Investment deal

Coworking organization WeWork sued Japan-based SoftBank after the technology investment group breached its contractual obligations by backing out of a USD 3 billion investment deal. The lawsuit filed in a US court in Delaware came just days after SoftBank said it was backing out of the plan to purchase WeWork shares to shore up the finances of the struggling sharing economy giant. WeWork's board of directors called the SoftBank action "a clear breach of its contractual obligations" under an agreement between the two firms last year as well as a breach of SoftBank's fiduciary obligations to the firm's current and former employees who were to sell their equity. The complaint alleges SoftBank yielded to pressure from "activist investors" and made the move after it had "received most...
WeWork troubles deepen as SoftBank pulls its $3 billion tender offer
BUSINESS

WeWork troubles deepen as SoftBank pulls its $3 billion tender offer

Softbank said it has terminated a $3 billion tender offer for additional WeWork shares agreed last year with shareholders, drawing threats of legal action and plunging the floundering office space company further into crisis. The tech investment giant said in a statement that given its duty to its shareholders it could no longer proceed with the deal, citing criminal and civil probes into the startup, WeWork’s failure to restructure a joint venture in China and the impact of the coronavirus pandemic. A special committee of WeWork’s board said it was disappointed and is considering “all of its legal options, including litigation.” SoftBank’s decision to rescind the offer means the Japanese firm is no longer obligated to proceed with a further $1.1 billion in debt financing for WeW...
WeWork Appoints Indian Origin CEO to start fresh chapter
News

WeWork Appoints Indian Origin CEO to start fresh chapter

New York, Feb 3, 2020: Embattled office-sharing firm WeWork has hired a new CEO to turn the page on Adam Neumann, its co-founder and former leader whose antics have finally tired investors. Indian origin Sandeep Mathrani, a real estate industry veteran, will officially take over on February 18, WeWork said in a statement published Saturday. He will be charged with the difficult task of relaunching WeWork, which had been one of America''s most celebrated startups that put a mammoth footprint in the commercial real estate of major cities around the globe. Its collapse led to Neumann''s departure and cost the main shareholder, Japanese billionaire Masayoshi Son, billions of dollars. Mathrani will replace Artie Minson and Sebastian Gunningham, who have been acting as interim CEOs ...
WeWork Completed Sales of Teem and Minority Stake in The Wing
ACQUISITION

WeWork Completed Sales of Teem and Minority Stake in The Wing

NEW YORK, 23rd Jan 2020--WeWork, the world’s leading co-working space announced that it has completed the sales of Teem and its minority stake in The Wing. The successful divestitures follow the December sale of Conductor and are part of WeWork’s strategy to focus on its core workspace business. “Last quarter, we articulated a long-term plan for disciplined growth and a clear path to profitability, and we continue to execute on this plan each day,” said co-CEO Artie Minson. “These sales mark the latest progress in WeWork’s evolution and allow our talented team to focus on the core business and delivering an exceptional experience for our members.” WeWork’s minority equity stake in The Wing, a network of work and community spaces designed for women, was acquired by a consortium ...
Masayoshi Son, Tech Visionary or Robber Baron?
Story

Masayoshi Son, Tech Visionary or Robber Baron?

This is the year that brought a $100 billion venture capitalist to his knees. In January, SoftBank Group Corp.’s Masayoshi Son was riding high, writing billion dollar checks to unicorns from office sharing startup WeWork to autonomous-delivery vehicle designer Nuro. But as 2019 winds down, the Japanese dealmaker is straining to finance a $9.5 billion bailout package for Adam Neumann’s troubled startup, whose valuation has evaporated from $47 billion to $8 billion or even zero, depending whom you ask.  SoftBank’s bad year goes well beyond WeWork Investors are starting to get the feeling that whatever Son brings to the public is troubled. And you don’t need to look far for proof, Shares of Uber Technologies Inc. and Slack Technologies Inc., both backed by the Vision Fund, tumbled...
WeWork Raises Funding from SoftBank Group
FUNDING

WeWork Raises Funding from SoftBank Group

NEW YORK & TOKYO-- The We Company and SoftBank Group announced an agreement under which SoftBank commits to provide significant funding to the WeWork. This includes $5 billion in new financing and the launching of a tender offer by SoftBank of up to $3 billion for existing shareholders. Additionally, SoftBank will be accelerating an existing commitment to fund $1.5 billion. The funding provides WeWork with significant liquidity to execute its business plan to accelerate the Company’s path to profitability and positive free cash flow. After closing, and following the tender offer, SoftBank’s fully diluted economic ownership of WeWork will be approximately 80 percent. Since SoftBank will not hold a majority of voting rights at any general stockholder meeting or board of ...
Softbank could take control of WeWork
News

Softbank could take control of WeWork

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 w...
WeWork CEO Adam Neumann decided to Step down
News

WeWork CEO Adam Neumann decided to Step down

WeWork co-founder Adam Neumann has decided to step down as CEO of the office sharing startup, people with knowledge of the matter said, citing pressure from board members tied to SoftBank. Neumann will remain as chairman of the company he started in 2010, and he continues to control a majority of voting shares, the sources said. The company confirmed the report, saying the change is effective immediately. As we published an article on sunday, there were speculation in the WeWork board to replace Adam Neumann as chief executive. The showdown between SoftBank and Adam comes after We Company postponed its initial public offering (IPO) last week. SoftBank is considering to make Neumann as a interim CEO and hired an external replacement. However, SoftBank could choose not to...
SoftBank Turns against WeWork’s parent CEO Neumann
BUSINESS

SoftBank Turns against WeWork’s parent CEO Neumann

(Reuters) - SoftBank Group, the biggest investor in Wework co-working is exploring ways to replace Adam Neumann as chief executive, four people familiar with the matter said on Sunday. The rare showdown between SoftBank and one of its biggest investments comes after We Company postponed its initial public offering (IPO) last week, following pushback from perspective investors, not just over its widening losses, but also over Neumann’s unusually firm grip on the company. This was a blow for SoftBank, which was hoping for We Company’s IPO to bolster its profits as it seeks to woo investors for its second $108 billion Vision Fund. It invested in We Company at a $47 billion valuation in January, yet stock market investor skepticism led to the startup considering a potential...
WeWork Delayed IPO Launch by End of 2019
Market

WeWork Delayed IPO Launch by End of 2019

A stock offering from fast-growing office-sharing startup WeWork is being delayed and will likely occur by the end of 2019, the parent company said. The news from The We Company, which had filed paperwork for an expected listing this month, puts off the listing amid concerns about a huge overvaluation of the company. "The We Company is looking forward to our upcoming IPO, which we expect to be completed by the end of the year," a company statement said late Monday. "We want to thank all of our employees, members and partners for their ongoing commitment." The We Company, its parent firm, was thought to be moving forward with listing on the Nasdaq next week. WeWork had been expected to launch its IPO roadshow on Monday to market its shares to potential investors. B...