NEW YORK - WeWork has accepted a financial rescue package from Softbank that would give the Japanese tech conglomerate control of the company, the Wall Street Journal reported. The Softbank deal gives WeWork a lifeline as it attempts to turn around its money-losing business model. But the rescue package comes at a steep cost for Softbank, which already owns one-third of WeWork and has already sunk $10 billion into the company. That means that Softbank is now investing more money into WeWork than the company is worth. The deal with Softbank also has a $5 billion loan component, and Softbank will release early $1.5 billion in funding that had been scheduled to kick in next year, the Journal reported.

Source: thestar October 22, 2019 13:30 UTC