SoftBank is reportedly walking away from part of its WeWork bailout by not completing its $3 billion tender offer for the coworking company.
The bailout package included a $3 billion tender offer for WeWork shares, as well as a $1.5 billion acceleration of equity and $5 billion in syndicated debt in order to save WeWork from losing money.
The Japanese conglomerate still plans to offer $5 billion in debt to WeWork. SoftBank also planned on doing a share swap for WeWork’s joint ventures, creating an out for the company, but the firm sent a letter to WeWork shareholders stating it may not complete the tender due to probes from the Securities and Exchange Commission and the Justice Department.
The WeWork bailout package valued the company at $8 billion back in October, a huge tumble from SoftBank’s original valuation of $47 billion in January 2019.
