SoftBank is rethinking the size of its investment in WeWork, according to reports.
SoftBank is planning to inject $2 billion into coworking space company WeWork, a person familiar with the deal told CNN Business. The source said the deal is expected to close this week.
WeWork recently opened an office in Durham and plans to open another operation in Raleigh this spring.
It also operates in Charlotte.
The latest news on the investment, first reported by the Financial Times, is a fraction of what was once reportedly on the table. SoftBank (SFTBF) had considered investing as much as $16 billion into WeWork this year, the FT reported.
The Wall Street Journal also reported the $2 billion figure.
“The $16 billion stake would have given SoftBank majority ownership of WeWork, but the firm’s LPs [limited partners] reportedly opposed the idea due to the company’s heavy losses,” according to PitchBook.
Founded in 2010, WeWork has already raised $10.6 billion. Nearly $9 billion of that is from SoftBank. WeWork is valued at $42 billion, a spokesperson told CNN Business in November.
WeWork, which has expanding footprint in NC, lands $3B investment
