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SoftBank Commits $1.1 Billion to WeWork Amid Membership Drop

  • New investment is in the form of senior secured debt financing
  • Membership slid 12% to 612,000 in this year’s second quarter
A pedestrian walks past the entrance to a We Work co-working office space.
Photographer: Bryn Colton/Bloomberg
Updated on

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.

The new financing, “another sign of SoftBank’s continued support for our business,” boosts the New York-based company’s available cash and unfunded cash commitments to $4.1 billion, according to Chief Financial Officer Kimberly Ross’s memo, the contents of which were confirmed by a spokeswoman. The investment is in the form of senior secured notes.