WeWork Seeks $4 Billion To Keep It Afloat
WeWork is in talks with SoftBank for a $1 billion injection, which it hopes to jimmy into a $3 billion debt deal with JPMorgan.
WeWork hopes to secure the funds as early as next week ahead of it revealing an outline for layoffs and asset sales to its employees. One source said that JPMorgan is wary of beginning negotiations before WeWork signs a new deal with SoftBank.
SoftBank’s injection would finance WeWork’s restructuring plans after the conglomerate decided that more cash is necessary to save its $10 billion investment. Before it moves forward with the funding, SoftBank is seeking to tweak the $1.5 billion warrant deal it struck with WeWork in January.
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WeWork delayed its IPO last month after the company came under great criticism for its financial losses, business model and corporate governance structure that led co-founder Adam Neumann to step down as CEO.
The company’s new co-CEOs Artie Minson and Sebastian Gunningham are planning to lay off 10% to 25% of the firm’s 12,500 staffers. It also plans to sell off its acquired companies that do not focus on their core business.
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