Company - - Jan 31,2017
Tokyo-based SoftBank Group is planning on an investment of more than $1 billion in US-based office space sharing start-up company – WeWork.
WeWork is working on raising a $100 billion technology fund and SoftBank’s investment may form a part of that fund. Notably, WeWork is yet to open any location in Japan.
The deal is yet to be confirmed by any of the two companies but sources close to the conglomerates had revealed the plans. At present, WeWork is valued at around $17 billion and SoftBank’s valuation of the company is anticipated to stand nearly at the same figure.
WeWork, just seven years old, is one of the richly valued private companies and had been in touch with the Japanese investment giant for a while. Earlier, SoftBank had discussed an investment in WeWork before pulling out.
Some officials have argued that WeWork is already being overvalued and a company involved in the business of office space has nothing to do with technology-focused investments. These executives have said that any investment in WeWork or other company won’t happen until and unless the SoftBank fund is finalized, which is expected to come out in the middle of next month.
WeWork has already been pumped after an investor group including the Jin Jiang International Hotels which invested $260 million in the firm. Market Analysts have recently reported that WeWork is continuously working on shifting its business model away from its office space provider towards a more tech-related conventional American corporation.
SoftBank, a telecommunications and investment giant, is also in discussions with Uber Technologies, though it is yet to be revealed that there is any investment involved. Earlier the month, Apple announced that it will plan $1 billion in SoftBank’s tech fund.