SoftBank ends WeWork tender; remains behind bailout
04 April, 2020
Japanese technology company SoftBank Group Corp called off its offering as high as $3 billion worth of shares in office-space rental venture WeWork, though it remains focused on its $5 billion bailout of the financially troubled company.
The primary loser in the offer's failure is WeWork founder Adam Neumann, who quit the business last year, but owns about 50 % the shares which were up for offer, according to SoftBank.
The business said Thursday that the choice not to close the offer was the main initial deal if certain conditions weren't met by an April 1 deadline.
Such conditions are the release of financial and operational information from U.S. criminal and civil investigations linked to Neumann, according to SoftBank.
The mandatory anti-trust approvals have not been obtained, and restrictions on WeWork because of government efforts to prevent the spread of the coronavirus pandemic were other factors, it said.
SoftBank said its bailout of WeWork, announced late this past year, would go ahead.
Views on WeWork's potential vary. Detractors say it's just a glorified real estate company. Backers say WeWork spaces are attractive because they are equipped with the most recent net and other technology features and offer opportunities for personal networking.
SoftBank and its own Vision Fund, which gathers investment money, has promised to get a lot more than $14 billion in WeWork, like the latest bailout money.
SoftBank Senior Vice President Robert Townsend said the tender offer's closure won't affect WeWork's businesses or its overall strategic plan.
WeWork has been trying to carefully turn itself around over the past half year and has installed new managers. SoftBank LEADER Masayoshi Son has repeatedly expressed his belief in its potential.
Source: japantoday.com
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