WeWork Raises Money

The We Company has secured an additional $3b of funding from SoftBank Corp, despite never making a profit and losing $723m over the first half of 2018. This new round of funding brings the company’s total funding to date to over $12b.

The deal comes in the form of a warrant, allowing SoftBank to pay $3 billion for the opportunity to buy shares before September 2019 at a price of $110 or higher, ultimately valuing WeWork at $42 billion minimum. SoftBank’s latest commitment follows a $1bn investment in WeWork earlier in the year in the form of a convertible note, and last year SoftBank and its Saudi-backed Vision Fund invested $4.4bn in WeWork’s equity, at a $20b valuation.

According to the Financial Times, SoftBank will pay WeWork $1.5 billion on January 15, 2019 and another $1.5 billion on April 15.

Bottom Line: Leaves you wondering if the work from home trend will have any impact on WeWork.