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We work obtained a new $ 3 billion financing from SoftBank Corp, not to be confused with SoftBank Vision Fund. The transaction takes the form of a warrant allowing SoftBank to pay $ 3 billion for the opportunity to buy shares by September 2019 at a price equal to or greater than $ 110, valuing at a minimum 42 billion USD for WeWork.
In August, SoftBank Corp invested $ 1 billion in WeWork in the form of a convertible note.
According to the Financial Times, SoftBank will pay WeWork $ 1.5 billion on January 15, 2019 and $ 1.5 billion on April 15.
SoftBank is by far the largest investor in WeWork, SoftBank Vision Fund having contributed $ 4.4 billion to the company last year.
The WeWork real estate game is just one aspect of the company's strategy.
More than physical earth, WeWork wants to be the central connective tissue of work in general. The company often contracts with major service providers at wholesale prices, trading on behalf of its 300,000 members. In addition, WeWork has developed enterprise products for large companies, such as Microsoft, which tend to sign longer and more lucrative leases. In fact, these types of business represent 29% of WeWork's sales.
The biggest problem is whether or not WeWork can maintain its excessive growth, which seems to have been the key to its soaring valuation. After all, WeWork has not yet achieved profitability.
Can the vision become a reality? SoftBank seems willing to bet on it.
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