SoftBank Group, a Japanese technology investment and conglomerate firm, has put some bids together which can save the WeWork parent company name We Co. SoftBank put the bid just some weeks before the imminent collapse of the real estate company. Since the crash of the initial public offering, We Co. has been facing severe cash crunch. The company before was planning to raise a billion of dollars in the debt on heels of their public offering to create a stability for continuous operations.
That blundered offering cost We Co. Adam Neumann his leadership at co-working rental business that he co-funded a decade ago. This new financing pitch which SoftBank has put together, probably would remove Neumann from company’s operations as well as from the business. The pitch of the SoftBank is not the only way to stand for We Co. Based on the report provided by WSJ, there is a plan in their works to raise billions of dollars in debt through JPMorgan Chase & Co.
A spokesperson for the We Co. wrote that WeWork had retained the major Wall Street financing institution to prepare a financing and approximately 60 sources of financing have signed in the agreements and are going to meet with the management of the company this incoming week.
SoftBank owns already around one-third of that company and the bid for their business world include billions in debt and in equity.
The struggles at the We Co. in together with the investments in the publicly traded companies such as Slack and Uber have also damaged SoftBank as it was expecting to advance with 2nd version of ambitious Vision Fund. The results are lackluster and is not just the public companies like Uber and Slack which are dragging down that fund. Direct investments to the consumer companies such as robotic pizza delivery startup named Zume and the Brandless, have failed to deliver also.