SoftBank commits $1.1 billion to WeWork amid membership drop

SoftBank Group Corp. is adding $1.1 billion to its WeWork commitment as the co-working company weathers declining membership amid the coronavirus pandemic, according to a staff memo obtained by Bloomberg News. While WeWork’s second-quarter revenue rose 9% to $882 million from a year earlier, that marked a decline from its $1.1 billion haul in this year’s first three months. Still, the cash burn was less than the $1.3 billion in WeWork’s peak outflow in the fourth quarter of 2019, Ross noted. The new investment from SoftBank comes after its roughly $100 billion Vision Fund recorded losses after writing down WeWork’s valuation to $2.9 billion, down more than 90% from its $47 billion peak. SoftBank has invested more than $10 billion in WeWork. Last month, We Co., the parent of WeWork, asked a judge to dismiss a lawsuit brought by two of its board members against SoftBank for reneging on a $3 billion offer to buy the co-working company’s closely held shares. The new debt financing replaces a $1.1 billion commitment that was conditional on the tender offer agreed to last October, a SoftBank representative said.