Softbank to Offer Financial Support to WeWork Owner

Economy

Tokyo, Oct. 17 (Jiji Press)--Softbank Group Corp. <9984> will propose financial support to The We Company, the struggling owner of shared office space provider WeWork, informed sources said Thursday.

The Japanese technology investor is expected to spend 5 billion dollars to acquire an additional stake in the U.S. company, the sources said.

The aid will be made by Softbank itself, not through its Softbank Vision Fund, the sources said. The Japanese company has no plans to acquire a majority of voting rights in The We Company, they said.

Softbank's proposal will be made in competition with a support package led by U.S. financial giant JPMorgan Chase & Co., the sources said.

The We Company posted a net loss of some 1.6 billion dollars in 2018. It withdrew its plan for an initial public offering, scheduled for September, due to a lukewarm response from investors.

[Copyright The Jiji Press, Ltd.]

Jiji Press