- Both the $1.5B and the $500M are about half of the original, agreed-upon sums for an earlier bailout deal. SoftBank backed out of that deal on the basis of certain conditions not being met. The decision sparked an ongoing legal battle.
- The deal would allow SoftBank to cut its bailout bill for WeWork. It has already pumped $10B of its capital into the company. Neumann and other investors would no longer run the risk of ending up with nothing, should SoftBank prevail in court.
- The deal could be finalized in the coming days, though there is no guarantee of signing.
- Previous reports claimed that WeWork was in talks with SPAC BowX Acquisition and other vehicles to go public via a reverse-merger, which could have valued the WeWork at $10B.
- While WeWork is still running losses, it is in better financial condition than the eve of its IPO, when its expected valuation of $47B crashed to $2.9B. It cut its cash burn from a high of $1.4B in Q4’19 to $517M in Q3’20.