, Columnist
WeWork's Savior Doesn't Have Such Deep Pockets
SoftBank has splashed a lot of money around. There are limits to its largesse, though.
Shared office, shared issues.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
SoftBank Group Corp.’s $9.5 billion bailout has rescued WeWork from the threat of bankruptcy. But make no mistake: The unicorn’s free-spending days are over. Its savior is far from a bottomless pit of money.
While WeWork had an eye-watering $22 billion of debt at the end of June plus $47 billion of looming lease-payment obligations, its rescuer isn’t in such great shape either. SoftBank is a junk-rated issuer, with the equivalent of $62 billion in net debt. From now on, founder Masayoshi Son will have to manage his cash pile carefully.