[bctt tweet=”WeWork is known for burning through cash at lightning speed, and now reports say it might run out of money as soon as November. But SoftBank may just be the hero the coworking company needs.” username=”allwork_space”]
SoftBank has been known as WeWork’s biggest shareholder and backer for several years. Now, the Japanese conglomerate is looking to invest billions into the company that would give it a controlling stake and value the firm below $8 billion. This is a massive drop from WeWork’s $47 billion valuation given just a few months ago.
Another lifeline that could possibly be thrown at the coworking provider is a bailout from JPMorgan Chase and others.
In the meantime, reports have revealed that the company is looking to lay off 2,000 of its 15,000 employees as it faces bankruptcy. If the firm does go bankrupt, it could shake the commercial real estate industry in markets where WeWork has a major presence, such as New York City and San Francisco.
While this shakeup would not alter the industry as a whole, it will likely lead to businesses hurting due to the company’s $22 billion in long-term liabilities — $17.8 billion of which is tied to long-term leases.
