FILE PHOTO - SoftBank Corp. placard is prepared during a ceremony to mark the company's debut on the Tokyo Stock Exchange in Tokyo, Japan December 19, 2018. REUTERS/Issei Kato (Reuters) - SoftBank Corp is in talks to invest $2 billion in U.S. shared office space provider WeWork Cos Inc this year, a much lower amount 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. Reporting by Sonam Rai in Bengaluru; Editing by Maju Samuel … [Read more...] about SoftBank to slash planned WeWork investment: FT
WeWork Cos. is increasingly stepping on the turf of landlords and real estate brokers -- and the industry is starting to push back. The office-sharing giant, valued at as much as $42 billion, is getting a greater portion of its business from the large companies that property owners usually court. It's also building an investment division to buy its own sites, according to people with knowledge of the matter. At the same time, big real estate names like Blackstone Group and Tishman Speyer are venturing into flexible-space offerings of their own. Brokers, meantime, are growing wary that WeWork is cutting them out of deals.WeWork's widening ambitions threaten to further upend the industry it has already reshaped in its eight-year existence. Few in the property business are willing to talk openly about the company, given its clout. Privately, more than a dozen real estate and banking executives interviewed by Bloomberg expressed misgivings about working with the closely held startup. … [Read more...] about Office-sharing giant WeWork keeps pushing. Now landlords and rivals are pushing back.
“A lot of people originally thought of the shared-office-space providers as bringing tenants,” said Tony Malkin, chief executive of Empire State Realty Trust Inc., which owns New York’s Empire State Building. “But I think now we’ve seen — particularly with WeWork and other providers’ expansion into the enterprise solution — that it’s really much more about disrupting the relationship of tenants to landlords, of tenants to brokers, of brokers to landlords.” … [Read more...] about WeWork keeps pushing. Now landlords and rivals are pushing back
By Liz Hoffman Eliot Brown The Wall Street Journal Maureen Farrell Wed., Dec. 19, 2018 Key investors in SoftBank Group Corp.’s giant tech fund have balked at a planned $16 billion (U.S.) investment in co-working startup WeWork Cos., leaving SoftBank chief Masayoshi Son to find an alternative as his ambitions hit up against the limits of his financial firepower. Government-backed funds in Saudi Arabia and Abu Dhabi, according to people familiar with the matter, have told SoftBank executives they have concerns about SoftBank’s negotiations to buy a majority of money-losing WeWork, whose industrial-chic workspaces and short-term leases have made it one of the world’s hottest startups. SoftBank’s Vision Fund is already a major investor in WeWork after acquiring nearly a fifth of the company last year with an investment of $4.4 billion at a valuation of $20 billion. SoftBank subsequently committed another $4 billion, including a $3 billion … [Read more...] about SoftBank finds limits to its love for WeWork as investors push back
WeWork still committed to UK despite Brexit uncertainty BelfastTelegraph.co.uk The new UK boss of flexible workspace firm WeWork has doubled down on the company’s commitment to the British market despite growing uncertainty over Brexit. https://www.belfasttelegraph.co.uk/business/uk-world/wework-still-committed-to-uk-despite-brexit-uncertainty-37636853.html https://www.belfasttelegraph.co.uk/business/uk-world/article37636852.ece/569b0/AUTOCROP/h342/bpanews_4669574b-ec7a-4923-b047-c371448b9578_1 Email The new UK boss of flexible workspace firm WeWork has doubled down on the company’s commitment to the British market despite growing uncertainty over Brexit. In his first interview as general manager for the UK and Ireland, Mathieu Proust told the Press Association that the company was eyeing up further expansion opportunities having already opened 34 sites in London and another two in Manchester. “We’re really committed to London,” he said. … [Read more...] about WeWork still committed to UK despite Brexit uncertainty