After series of failed attempts to enter the stock market, WeWork, an American real estate company that offers co-working spaces to startups has accepted SoftBank’s deal to provide $5 billion in new financing and close to $3 Billion for its current existing shareholders. In addition, embattled Neumann with attain observer status but will leave the board.
SoftBank, a Japanese firm already owned one-third of the company in shares but for providing significant capital and operational support, SoftBank will own 80% of the company and in addition, Marcelo Claure will become the executive chairman of the WeWork board.
WeWork initially valued at $47 billion in January managed to pull out of an IPO in September and is expected to let go of thousands of employees this month.
