Private Equity

SoftBank backs away from part of planned bailout of WeWork

Investor told office-sharing company it may not buy $3bn of shares from existing investors as planned

Masayoshi Son, chairman and chief executive officer of SoftBank
Masayoshi Son, chairman and chief executive officer of SoftBank Photo: Getty Images

SoftBank is backing away from part of its planned bailout of WeWork, people familiar with the matter said, privately citing several regulatory investigations of the office-sharing company.

A notice sent to WeWork shareholders Tuesday said that SoftBank believes regulatory probes into the startup’s business, including from the Securities and Exchange Commission and Justice Department, give it an out under the deal struck last fall to purchase $3bn of WeWork shares from existing investors.

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