SoftBank abandons a deal with WeWork
WeWork's board is disappointed by the development and is considering all of its legal options
Stocks impacted: SoftBank Group Corp (9984)
SoftBank Group Corp will not complete a $3 billion tender offer for additional WeWork shares agreed last year with its shareholders. As a reminder, the Japanese company notified stockholders in mid-March that conditions for the deal hadn’t been met, so today’s decision is hardly a surprise for investors. Earlier, the deal was expected to close April 1. In turn, a special committee of WeWork's board said it was disappointed by the development and is considering all of its legal options, including litigation. Now, former WeWork CEO Adam Neumann, ejected from his role last year, is expected to sue. Meanwhile, SoftBank has been working to raise $10 billion for its Vision Fund to help combat the coronavirus pandemic. SoftBank shares gained 2.5% on Thursday.
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