Once, WeWork valued at around $47 billion and According to the report of CNBC, as SoftBank has taken control of this co-working business and it was predicted that the WeWork will soon be worth of $7.5 billion.
SoftBank has been investing the WeWork for a long time and now SoftBank is planning to invest an amount between $4 to $5 billion to exchange existing and new shares – reported by CNBC. The deal is expected to be announced soon and the deal seems the only lifeline for the WeWork as they are running out of their cash and is shopping their several essential assets since they are attempting to reduce their cash burn which WeWork actually declined to comment.
To make it clear, SoftBank is taking the control of WeWork with its International Chief Executive Officer named Marcelo Claure. After the Former CEO and Co-founder named Adam Neumann had relinquished the control of this company and changed to non-executive chairman role, the Japanese telecom came and after three weeks, WeWork decided to delay their public offering which was highly anticipated. The vice chairman of WeWork Sabastian Gunningham and the President and chief operating officer Artie Minson are now serving as the Co-CEOs of WeWork.
In addition to these incidents, WeWork has also lost its communication chief named Jimmy Asci along with the chief marketing officer named Robin Daniels and also there is others. Besides, the company has also slashed around hundreds of jobs and also opted to close WeGrow (its school), in 2020. Neumann in a statement confirmed that As a counder of the WeWork, he was so proud of the team as well as the company which they all together had built in the last decade and their global platform was across 111 cities of 29 countries and each day, they served more than 527,000 members.