Getty Images WeWork is seeking a $4 billion lifeline from SoftBank and JPMorgan, according to Reuters. The shared-workspace group is in talks with its largest investor for a $1 billion injection, which it hopes to parlay into a $3 billion debt deal with the bank, Reuters reported, citing people familiar with the discussions. WeWork is hoping to secure the funds as early as next week, when it expects to outline planned job cuts and asset sales to employees following the collapse of its initial public offering last month, Reuters said. JPMorgan, however, is reluctant to begin serious negotiations before WeWork strikes a new deal with SoftBank, one source told the news outlet. JPMorgan declined to comment. SoftBank's money would finance WeWork's restructuring plans, Reuters reported. The Japanese conglomerate, which controls about 29% of WeWork and has invested or committed more than $10 billion already, has determined a fresh influx of cash is necessary to save its investment, one source told Reuters. Before it coughs up the funds, however, SoftBank wants to tweak the $1.5 billion warrant deal it struck with WeWork in January based on the startup's private valuation of $47 billion at the time. It's eager to pay less per share, giving it a bigger stake in the business, the Financial Times reported last month. WeWork scrapped its plans to go public last month after investors criticized its business model, mounting losses, complex structure, and controversial cofounder and CEO, Adam Neumann. Days before its IPO, the startup was looking at a public valuation below $20 billion — less than half its latest private valuation at the time. The prospect of raising less than $3 billion, the amount needed to unlock $6 billion in bank financing, prompted WeWork to shelve its plans. The backlash from investors has led WeWork to overhaul its corporate governance, rejigger its share structure, and replace Neumann with two co-CEOs, Artie Minson and Sebastian Gunningham. The pair plan to lay off 10% to 25% of the group's roughly 12,500 employees, Business Insider reported. They also intend to sell ancillary businesses that provide marketing, networking, and office-cleaning services, according to The Information. Read more: WeWork is hitting the brakes after its IPO went up in smoke — and landlords could pay the price Read more: 'The emperor has no clothes': Billionaire debt investor Howard Marks slammed WeWork's business model and valuation
WeWork is seeking a $1bn cash injection from its largest shareholder SoftBank and a $3bn debt deal from JPMorgan, Reuters has reported. The co-working company reportedly wants to secure the funds in the week of 14 October, when it expects to announce a restructuring, which could see between 10% and 25% of the group’s 12,500 employees laid off, according to Business Insider. In an interview with Bloomberg on Thursday, CEO Brian Chesky said that he was “very confident” about securing funding for his company. SoftBank wants to renegotiate a $1.5 billion warrant deal, which was agreed in January based on WeWork being valued at around $47 billion, before providing the additional $1 billion, one of the sources said.