American coworking giant WeWork Cos. Inc. secured an additional US$2 billion investment from Japan's SoftBank Group Corp. and rebranded as The We Company, which will establish WeWork, WeLive and WeGrow as three distinct business lines.
The latest SoftBank investment is in addition to a previous US$4 billion investment and values the company at US$47 billion. Overall, Softbank's US$6 billion investment comprises US$5 billion of primary growth capital and US$1 billion in secondary capital, earmarked for share purchases from investors and employees. Altogether, SoftBank and related entities have invested more than US$10 billion in WeWork.
The US$2 billion of financing is significantly less than a previously contemplated US$16 billion investment, which was dropped after the Public Investment Fund of Saudi Arabia and Abu Dhabi's Mubadala Investment Co., major contributors to the SoftBank Vision Fund, expressed concern.