WeWork board members are looking forward to receiving a bailout package from SoftBank, a Japanese congolemerate and JPMorgan Chase, underwrite and third largest investor in the company.
What’s in the bailout package?
WeWork is deemed to run out of the cash until November this year and to continue the operations, the company needs investors to flood in more money. SoftBank and JPMorgan have submitted their proposals and the real-estate company need to choose one.
SoftBank’s bailout package
SoftBank is ready to flood in more money and raise its stake in the company. The Japanese tech investor has already duped more than $10 Billion in the company. Previously, WeWork was valued at $47 Billion; however, its valuation tanked below $20 Billion. Recently, it also botched its IPO due to erratic management and an unsustainable business model.
JPMorgan’s bailout package.
JPMorgan Chase is one of the lead underwriters of the company. Over the years, it’s been one of the biggest lenders and now it’s in talks with 100 investors who have signed non-disclosure agreement to participate in the deal, without additional funding.
The investment bank is planning to provide $5 Billion in debt and it’s reported that WeWork is will JPMorgan Chase package as a lifeline, instead of selling its stake to SoftBank, Bloomberg reported.
WeWork recently ousted its founder Mr. Adam Neumann from CEO position replacing him with Sebastian Gunningham and Artie Minson, jointly working as co-CEOs.