
WeWork Worries Drop Softbank Quarterly Profits by 94 Percent
Japanese technology conglomerate SoftBank Group Corp. said its profit for the last quarter dropped amid worries about the perceived risk of its investments into companies like WeWork.
Japanese technology conglomerate SoftBank Group Corp. said its profit for the last quarter dropped amid worries about the perceived risk of its investments into companies like WeWork.
Japanese technology company SoftBank Group Corp. tumbled into losses in the last quarter as its earnings were hammered by money-losing investments, including a bailout for office-space sharing startup WeWork.
WeWork’s woes are substantial enough that some analysts say they could derail the investment ambitions of SoftBank’s mammoth Vision Fund. WeWork is the largest player in Boston’s coworking scene, and leases substantial space in the downtown office market.
WeWork is accepting a $5 billion rescue package that hands control of the company to Japanese tech giant SoftBank and pushes aside co-founder Adam Neumann, but the company still has a long road ahead of it.
The Wall Street Journal is reporting that WeWork is being taken over by the Japanese tech conglomerate that invested billions in the company before its botched effort to go public.