RESEARCH TRIANGLE PARK – SoftBank says it will not go ahead with a $3 billion bailout of coworking and office space sharing conglomeratre WeWork, citing several different reasons for ending a deal announced last October.
WeWork has several operations in North Carolina, including offices in Raleigh, Durham and Charlotte.
SoftBank said in a statement that the decision “will have no impact on WeWork’s operations, customers, five-year business and strategic plan, or the vast majority of WeWork’s current employees,” according to newsw reports.
The Japanese firm said “the existence of multiple, new, and significant pending criminal and civil investigations” was one of the reasons, according to CNBC.
WeWork’s board said it would consider “all of its legal options, including litigation.”
The full statement from the Special Committee of the WeWork Board of Directors follows:
“The Special Committee of the Board of Directors of WeWork has been advised by SoftBank, the controlling shareholder of WeWork, that it will not consummate the tender offer which it agreed to in October of 2019. The Special Committee is surprised and disappointed at this development, and remains committed to reaching a resolution that is in the best interest of WeWork and its minority shareholders, including WeWork’s employees and former employees. The Special Committee will evaluate all of its legal options, including litigation.”
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