WeWork Announces Completion of $1.5 Billion Funding from SoftBank Group; Board and Governance Changes Become Effective
NEW YORK & TOKYO--(Business Wire / Korea Newswire) November 01, 2019 -- The We Company (“WeWork” or the “Company”) and SoftBank Group Corp. (“SoftBank”) today announced that WeWork has received $1.5 billion in funding, which was an acceleration of the existing payment obligation, approved by WeWork’s shareholders at $11.60 per share. In connection with the completion of the $1.5 billion funding from SoftBank, several governance changes became effective today, including the reconstitution of the WeWork Board of Directors.
As previously announced, the $1.5 billion payment and governance changes are part of an agreement with WeWork that has now been approved by WeWork shareholders, under which SoftBank will provide significant funding to the Company. The financing package includes $5 billion in new debt financing.
“The $1.5 billion in funding that WeWork received today from SoftBank positions the Company for the future and underlines Softbank’s steadfast belief in the business,” said Marcelo Claure, Executive Chairman of the Board of Directors of WeWork. “WeWork is leading the innovation of a multi-trillion dollar industry, and this financing package enables the company to accelerate the path to profitability and free cash flow generation. I want to thank management, the entire WeWork team, our members, landlords and communities around the world for their continued support and dedication.”
Claure added, “Softbank’s high-conviction investment comes with operational support as well as improved governance. With our expanded Board seats we anticipate appointing two additional directors in the near future.”
Pursuant to the previously announced agreement with WeWork and completion of the accelerated $1.5 billion payment commitment, several governance changes are effective immediately. The Board of WeWork has been reconstituted to include 10 members, initially consisting of:
· Five directors designated by either SoftBank or SoftBank Vision Fund, including Ron Fisher, Marcelo Claure, Steven Langman, and two others to be named at a later date;
· Two directors designated by existing investors Benchmark Capital and Hony Capital, who are Bruce Dunlevie and John Zhao, respectively;
· Two directors not affiliated with WeWork, who are Jeff Sine and Mark Schwartz; and
· One director from the Special Committee of the Board, Lew Frankfort.
Other governance changes, which became effective today include:
· Marcelo Claure today has been appointed Executive Chairman of the Board.
· Adam Neumann has become a Board observer, and the Board has received voting control over his shares.
About The SoftBank Group
The SoftBank Group is a global technology player that aspires to drive the Information Revolution. The SoftBank Group is comprised of the holding company SoftBank Group Corp. (TOKYO: 9984) and its global portfolio of companies, which includes advanced telecommunications, Internet services, AI, smart robotics, IoT and clean energy technology providers. In September 2016, Arm Limited, the world's leading semiconductor IP company, joined the SoftBank Group. SoftBank Group Corp. is invested in the SoftBank Vision Fund, which plans to invest up to $100 billion in the global businesses and technologies that the SoftBank Vision Fund believes will enable the next stage of the Information Revolution. To learn more, please visit https://group.softbank/en/.
WeWork provides members around the world with space, community, and services through both physical and virtual offerings. Its mission is to create a world where people work to make a life, not just a living. As of Q2 2019, WeWork had 528 locations in over 111 cities and 29 countries. Our 527,000 memberships represent global enterprises across multiple industries, including 38% of the Global Fortune 500. We are committed to providing our members around the world with a better day at work for less.
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