WeWork’s trials and tribulations are eye-catching, to say the least. Recently, SoftBank, the Japanese backer of the flexible workspace aggregator startup, has recanted its offer to buy up to $3 billion of WeWork’s shares, which would have been a much-needed reprieve for WeWork.
Though this was a blow for the company, SoftBank has come back to say it will be committing $1.1 billion in new financing towards WeWork to help the company regain its former glory.
Kimberly Ross, WeWork’s CFO, said:
“The numbers illustrate that similar to virtually every company around the world, COVID-19 has had an impact on our business. However, they also show our five-year plan in action.”
So, the money isn’t coming without substantial evidence that WeWork can survive COVID and thrive in a post-pandemic market. Still, WeWork has held on this long.
SoftBank has made a number of moves outside of finances to prove its dedication to WeWork. We reported that SoftBank had placed some of its own into the WeWork Board of Members, further supporting the startup and aiding in its new CEO's vote of confidence.