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SoftBank is in talks to invest $15B - $20B in WeWork for a majority stake

Oct 10, 2018, 05:55 IST

REUTERS/Bobby Yip

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  • Softbank may make an investment between $15 billion and $20 billion in WeWork, giving it a majority stake in the co-working space company, according to the Wall Street Journal.
  • The discussions are ongoing and a deal is not guaranteed.
  • SoftBank's technology-focused Vision Fund already made a $4.4 billion investment in WeWork last August, giving it a 20% ownership stake in the company.

Softbank is in discussions to invest $15 billion to $20 billion in WeWork, giving it a majority stake in the co-working space company, according to a Wall Street Journal report on Tuesday.

The discussions are ongoing and a deal is not guaranteed, according to the report, which cites anonymous sources.

The deal is likely to be financed through SoftBanks' $92 billion Vision Fund, which is backed by Saudi Arabia and Abu Dhabi wealth funds as well as SoftBank's own capital, the Journal reported. The technology-focused Vision Fund already made a $4.4 billion investment in WeWork last August, giving it a 20% ownership stake in the company.

It's not clear what valuation SoftBank would give WeWork in the majority-stake deal. The two companies had been in talks for a smaller investment this June that would have valued WeWork at nearly $40 billion, according to The Wall Street Journal.

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Japan-based SoftBank's largest investment to date in a venture-backed startup was $7.7 billion for 15% ownership in Uber, according to The Wall Street Journal.

Representatives of SoftBank and WeWork did not immediately return Business Insider's requests for comment.

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