Japanese conglomerate SoftBank is reportedly in talks to add an extra $1 billion or more to its $1.5 billion investment into WeWork for next year.
The revamped deal would see SoftBank investing at least $2.5 billion, but would reduce the price per share that it acquires WeWork stock and give it a larger stake into the coworking firm.
This investment could unlock additional financing options for WeWork, such as its $3 billion to $4 billion loan package led by JPMorgan Chase and Goldman Sachs that is contingent upon the firm raising additional capital.
The renegotiated deal could impact SoftBank’s previous WeWork valuation of $47 billion, which has been subject to much criticism from investors and analysts alike.
This news comes on the heels of WeWork’s tumultuous past few weeks after its anticipated IPO crashed and burned, leading founder Adam Neumann to step down from his position as CEO.
