WeWork drags down SoftBank… again

SoftBank’s investment in WeWork has contributed to an operating loss of Y13bn (£1.4bn) in the nine months ended 31 December 2019. Year-on-year, the investor said that had deteriorated by Y1.9tn. Within SoftBank’s Vision fund, which holds the investment in WeWork, operating losses totalled Y727.8bn, reflecting an unrealised valuation loss of Y727.3bn. The tech fund’s investment in Uber also contributed to the loss. The loss attributed to the decrease in fair value of investments in WeWork alone totalled Y359.2bn. SoftBank’s nine-month results also reveal that as of 31 December 2019, it had invested $10.3bn in WeWork, a figure that does not include the ongoing tender offer for WeWork shares, which would see it invest a further $3bn in the flexible office provider. That total investment will be almost double the current equity value of WeWork, which stands at just $7.3bn. See also: WeWork outlines free cash flow targets To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette