Telecommunications and internet firm SoftBank is considering investing “well over $1bn” in US-based workspace operator WeWork, the Wall Street Journal reported yesterday citing people familiar with the matter.
The deal would be the first to be conducted by SoftBank’s $100bn Vision Fund, which is set to formally close shortly after securing capital from a range of other corporates as well as state-owned investment funds.
WeWork operates a network of co-working spaces that spans 147 locations across 35 cities in 15 countries. Users can rent space, private desks or private offices for a monthly fee and can access super-fast internet a well as services including printing facilities and free refreshments.
The company has raised almost $1.7bn in venture funding since it was founded in 2010, and was valued at $16.9bn as of a $690m series F round it closed in October 2016. SoftBank would invest at a valuation of at least that size, according to the WSJ.
The series F capital came from investors including hotel chain Shanghai Jin Jiang International and Hony Capital, the private equity firm backed by conglomerate Legend Holdings.
Other WeWork shareholders include financial services group Fidelity Management and Research, JP Morgan Investment Management, T. Rowe Price, Goldman Sachs, Benchmark and clients of Wellington Management Company.
In addition to WeWork, SoftBank has also held preliminary discussions with ride hailing platform Uber, according to the WSJ, but the sealing of any deals will likely take place after the fund’s closure is formally announced.