- WeWork's options to avoid running out of cash could include a SoftBank financing deal that would give the Japanese company -- WeWork's largest investor -- control of the office rental startup, The Wall Street Journal reported on Sunday.
- SoftBank's deal could value the startup below $10 billion. The Japanese investment group valued WeWork at $47 billion in its January funding round.
- WeWork is also working with JPMorgan on another option, lining up billions for a debt deal.
- WeWork could run out of money as soon as the end of November, The Financial Times reported last week. The company's new co-CEOs are slashing thousands of jobs, selling off businesses, and closing non-core activities like WeGrow.
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WeWork's cash problems could lead to a takeover by its largest investor that would see its valuation dip below $10 billion, The Wall Street Journal reported on Sunday.
The office rental company had planned to raise billions by going public, but its initial public offering was shelved after investors raised concerns about its leadership, business model, and conflicts of interest. After co-founder Adam Neumann stepped down last month, new co-CEOs shelved the IPO, made plans to lay off thousands, and embarked on other cost-cutting measures like selling the company's private jet and closing WeGrow, its educational arm.
Now, WeWork, which has seen its credit rating sink to junk status, could run out of cash as soon as the end of November, The Financial Times reported last week. The company is exploring options to help with the cash crunch.
One solution could be taking more money from its largest investor. SoftBank could invest several billion in new equity and debt, the Journal said.