In deciding to rescue WeWork, SoftBank likely was motivated by more than just the coworking company’s potential, business experts told Business Insider.
SoftBank’s decision to bail out WeWork was likely prompted by an impaired Vision.
The Japanese conglomerate will reportedly invest another $10 billion or so in WeWork to help prop up the struggling company, buy out some of its existing shareholders, and usher cofounder Adam Neumann out the door.
Under the deal, the conglomerate will loan WeWork $5 billion and speed up the hand over of a planned $1.5 billion investment that it wasn’t scheduled to make until next year.
That’s at least $2 billion less than the additional money SoftBank is sinking into it, and less than half what it will have invested in WeWork in total.
In order for SoftBank to make money on the deal, WeWork will have to go public at a valuation of at least $15 billion, The New York Times estimated.
SoftBank is likely motivated by more than WeWork’s potentialSon and his team at SoftBank may well still be believers in WeWork’s potential.