SoftBank set to invest more than $3B in WeWork
SoftBank set to invest more than $3 billion in WeWork
SoftBank is close to finalizing an investment in WeWork, a source close to the transaction tells CNBC. The deal is expected to be worth over $3 billion.The investment being discussed is a $2 billion primary tranche of funding, followed by a secondary round worth more than $1 billion. SoftBank may increase the size of the secondary investment to nearly $2 billion, the source said, for a total investment of nearly $4 billion in the shared space real estate startup.For WeWork insiders, there is a tender offer on the table at around $44.10 per internal share. If the deal closes, WeWork would be valued at more than $20 billion. The most recent investment into WeWork valued the New York-based company at about $17 billion.In December, Masayoshi Son, the Japanese billionaire who control SoftBank, promised Donald Trump he would invest $50 billion in the United States.WeWork South Lake Union labs in Seattle.WeWork Corp.Last month, The Wall Street Journal reported that SoftBank was considering an investment of "over $1 billion" in WeWork. However, CNBC's source said that Softbank has increased its interest and cash infusion plans since The Journal first published its story.When reached for comment by CNBC, a spokesperson for WeWork would not confirm details. SoftBank did not immediately respond to CNBC's request for comment.Over the past two years, WeWork has raised more than $1 billion from firms such as Goldman Sachs, Benchmark and China-based Hony Capital. It is aggressively expanding into new cities, and now has more than 150 locations in 15 countries.