The We Company, the parent company of office space provider WeWork, is considering a rescue plan from Japanese tech investor SoftBank. That is what Bloomberg press agency writes based on insiders. As part of the rescue plan, SoftBank then takes over control of the WeWork-plagued debt.
WeWork would also have another option. The American investment bank JPMorgan Chase leads talks about a $ 5 billion credit for the company.
Until a few months ago, WeWork was considered a growth brilliant. When the company pursued an IPO, investors discovered that the company had no clear path to profitability. Adam Neumann, the CEO, was also discredited because, among other things, he gave his family important positions and bought real estate with his own company, which he then sold on to WeWork.
After the fuss, WeWork canceled its IPO. The company also planned a $ 6 billion loan that depended on a stock market flotation. Without those revenue streams, the company ran out of money.