Japanese tech firm SoftBank (SFTBY - Free Report) is reportedly taking control of office-sharing startup WeWork. WeWork was one of 2019's most anticipated IPOs, but plans quickly fell apart. Its IPO prospectus revealed a $900 million loss in the first half of 2019, and concerns ballooned over the company's corporate governance practices.
Founder Adam Neumann resigned as CEO in September, and the company's main goal has been to raise new capital ever since. Artie Minson and Sebastian Gunnigham have been named co-CEOs of WeWork; both are veterans of the media and tech industries.
SoftBank has invested roughly $10 billion in WeWork to date. Now, it has as much as 70% control of WeWork. The takeover bid values WeWork between $7.5 billion and $8 billion, a stark difference from the $47 billion the company was valued at just six weeks ago.
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