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The WeWork saga could finally be over.
Topline: After months of uncertainty surrounding WeWork’s meteoric rise and fall, the company will now fall to an $8 billion valuation after it accepted a bailout offer from its largest shareholder, Japanese investing conglomerate SoftBank, CNBC first reported on Monday.
- The deal could be announced as soon as Tuesday, and will value WeWork between $7.5 billion and $8 billion—a marked decline from the $47 billion valuation the company received in January.
- Led by Japanese billionaire Masayoshi Son, SoftBank plans to spend between $4 billion and $5 billion on new and existing equities to complete its takeover of WeWork.
- Executives at WeWork had previously been weighing two financial rescue packages—one led by SoftBank and one led by JPMorgan Chase—as the company scrambles for cash following its failed IPO.
Key background: WeWork has imploded over the last month, as it canceled its highly anticipated IPO and ousted CEO and founder Adam Neumann. The company’s new co-chiefs immediately began selling off the company’s assets—including Neumann’s famed $60 million private jet—to cut costs and raise cash.
This is a developing story.
This article was originally published by Forbes.com. Read the original article here.