Investing.com - Japan-listed Softbank (T:9984) is reportedly looking to take more control of WeWork through a financing package worth several billion dollars, according to The Wall Street Journal, which cited people familiar with the matter.
SoftBank already owns one-third of WeWork. The potential deal, which would involve several billion dollars in equity and debt, would further dilute the influence of WeWork co-founder Adam Neumann and give voting power to the Japanese company, the Journal said, and noted that there is no guarantee that a deal will be reached.
WeWork delayed its initial public offering plan last month amid concerns over its governance and valuation.
"WeWork has retained a major Wall Street financial institution to arrange a financing," a WeWork spokeswoman said. "Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company's management and its bankers over the course of this past week and this coming week."
The company lost $1.9 billion in 2018 and spent $2.36 billion in cash in the first half 2019, according to filings.