Startup

SoftBank is considering taking a majority stake in WeWork

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SoftBank may soon own up to 50 percent of WeWork, a well-funded provider of co-working spaces headquartered in New York, according to a new report from The Wall Street Journal.SoftBank is reportedly weighing an investment between $15 billion and $20 billion, which would come from its $92 billion Vision Fund, a super-sized venture fund led by Japanese entrepreneur and investor Masayoshi Son.WeWork declined to comment.SoftBank already owns some 20 percent of WeWork.

The firm invested $4.4 billion in the company in August 2017, $1.4 billion of which was set aside to help WeWork expand in China, Japan and Southeast Asia.SoftBank pours $4.4B into WeWorkThis August, WeWorkraised another $1 billion from SoftBank in convertible debt.

At the same time, WeWork disclosed financials to a handful of media outlets, sharing that its revenue had doubled to $763.8 million in the first half of 2018 as losses increasedto $723 million.SoftBank, for its part, seems to have a hankering for real estate tech.

Not only has it become a key stakeholder in WeWork, but it has deployed significantamounts of capital to Opendoor, Compass, Katerra and others.Last month, the Vision Fund backed Opendoor, a platform for buying and selling homes, with $400 million.

The same day, it led a $400 million round for Compass, valuing the real estate brokerage startup at $4.4 billion.

As for Katerra, SoftBank poured $865 million into the construction tech business in January.WeWork is just one facet of SoftBank bet on real estateWeWork, founded in 2010 by Adam Neumann and MiguelMcKelvey, has raised nearly$5 billion in a combination of debt and equity funding to date.

It was valued at $20 billion in 2017, though reportsearlier this summer estimated its valuation would fall somewhere between $35 billion and $40 billion with additional capital from SoftBank.

A $40 billion valuation would make it the second most valuable VC-backed company in the U.S.

behind only Uber.WeWork has more than268,000 members across 287 locations in 23 countries.WeWork makes its third-biggest acquisition to date, shelling out $100 million for a software startup called Teem




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