Deals
WeWork IPO Turns Contentious at SoftBank’s Vision Fund
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As WeWork contemplates listing on the public markets at a far lower valuation that previously expected, its biggest backer—Japan's SoftBank Group Corp.—is bracing for a potentially staggering loss, a stark reminder of the risks of an investing strategy that inflated startup valuations across Silicon Valley.
SoftBank has a roughly 29% stake in the We Co., WeWork’s parent, said one executive at an analyst call on Wednesday, after the company plowed a total of $10.65 billion into the startup. The Tokyo conglomerate’s massive stake is a vote of confidence in the unprofitable company, which lost about $1.61 billion last year.