SoftBank Group has scrapped a planned $16bn investment in shared-office space provider WeWork, opting instead for a smaller deal of about $2bn amid market turbulence and opposition from investment partners, according to people familiar with the matter.
Scoop: Japan’s SoftBank has radically scaled back plans for fresh investment in WeWork, the lossmaking shared-office provider, following the recent tech stock rout and concerns among investors in its $100bn Vision Fund. Full story w/ details w/ @EricGPlatt https://t.co/UrzysJQYMZ
— Arash Massoudi (@ArashMassoudi) January 7, 2019
The two companies could announce the smaller deal as soon as Tuesday, valuing WeWork at about $36bn.
The exact reason for the pared-back investment is unclear, though the deal faced significant hurdles.
SoftBank shares have been volatile recently, falling by 33 per cent in the past three months. The company also suffered an embarrassing start to trading for its newly-listed Japanese mobile phone business in late December after raising $23bn from investors.
