SoftBank has committed $1.1 billion in new financing to WeWork, in addition to the $10 billion the conglomerate has already invested into the coworking firm over the past few years.
According to WeWork’s Chief Financial Officer Kimberly Ross, the company’s revenue for the second quarter of 2020 saw a 9% increase from the prior year at $882 million. In the first quarter, WeWork took in $1.1 billion in revenue.
The financing is situated as senior secured debt and the company will have a year to access the financing.
Just one year ago, WeWork filed to move forward with an initial public offering, however things quickly went downhill and led to the company restructuring most of its internal operations.
The company has since been taking numerous cost-cutting efforts, such as selling off its non-core businesses and acquisitions, as well as laying off employees.
Now, in the wake of the ongoing pandemic, the coworking industry as a whole is navigating how to service wary members while keeping them safe. However, a recent JLL report predicts that the slowdown in demand for flexible office space is short-term.
“Although freelancers are more likely to shed coworking space as the COVID-19 outbreak stalls business, 67% of CRE decision makers are increasing workplace mobility programs and incorporating flexible space as a central element of their agile work strategies,” the report found.