SoftBank Cuts Planned Investment Into WeWork by $14 Billion

The Japanese tech fund discussed investing $16 billion into the Israeli startup at the end of last year, and has cut its planned investment to $2 billion

Adam Neumann, CEO of WeWork, in New York City, May 15, 2017.
EDUARDO MUNOZ/ REUTERS

Japan's SoftBank Corp is in talks to invest $2 billion in U.S. shared office space provider WeWork Cos Inc, founded by Israeli businessman Adam Neumann, this year.

The sum is much lower than the $16 billion discussed towards the end of last year, the Financial Times reported on Monday.

The deal will now not include the participation of SoftBank’s Vision Fund, which had been a major backer of SoftBank’s existing investment in WeWork, the report said, citing two people briefed on the deal.

Reuters reported in November that loss-making WeWork had secured an additional $3 billion in funding from SoftBank.

In October, TheMarker reported that the Japanese corporation intended to invest $16 billion - an investment that would give SoftBank a majority stake in the Israeli startup. 

In December, The Wall Street Journal reported that the SoftBank Chief Executive Masayoshi Son was critcized by key investors tied to government-backed funds in Saudi Arabia and Abu Dhabi over the planned investment.