Technology
WeWork raises $3 billion from SoftBank, potential valuation of $42 billion
Office sharing firm WeWork has secured an additional $3 billion
from Japanese tech giant SoftBank, bringing its total funding and
commitments to $6.4 billion.
The SoftBank cash comes in the form of a warrant, giving WeWork
the option of new cash in the first half of 2019. The warrant
automatically converts to stock in September at a price that
gives WeWork a valuation of around $42 billion — provided the
company doesn’t go public or sell in the meantime.
WeWork described the funding as “opportunistic financing”
available to the company on attractive terms. Business Insider
first reported in June that WeWork was in talks with SoftBank
to raise further funding at a $35 billion valuation.
According to third-quarter financials seen by Business Insider,
WeWork has substantially increased its revenue but its losses
have more than tripled.
Here are the key numbers from WeWork’s Q3 2018
financials:
-
Revenue: $482.3 million, up
from $241 million -
Net loss: $1.2 billion, from
$322 million -
Total revenue over the last 12
months: $1.5 billion.
WeWork has played up its rapid
expansion, with the office sharing firm now present across 83
cities and 24 countries. The firm made its name with brighly
coloured co-working spaces with free beer targeted at startups,
but is increasingly using its massive cash pile to target bigger
enterprise clients, and take on corporate makeovers on behalf of
blue-chip firms.
The new funding from SoftBank
comes after the firm committed $1 billion to WeWork in
August
335 locations, 83 cities, 24
countries
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