WeWork, once valued at $47 billion and set to make Adam Neumann a billionaire, suffered a major crisis that led to its bankruptcy. In an unexpected turn of events, Neumann tried to buy the bankrupt company for a sum of around 500 to 600 million dollars. WeWork eventually reached an agreement with its existing creditors, providing them with around $400 million in the form of a loan, which enabled the company to emerge from bankruptcy. The company, which managed more than 40 million square feet of rental space in December 2022, has seen its surface area halved to around 20 million square feet.

SoftBank, one of WeWork's original financial backers, continues to stand by the company despite the substantial losses incurred. Reportedly, SoftBank will retain a stake in WeWork, securing at least 16.5% of the company upon its emergence from Chapter 11 bankruptcy, with the possibility of an increase to 36%. This move is intended to allow SoftBank to recoup some of the huge sum originally invested in WeWork, although the new $400 million contribution and the stake in the restructured company are unlikely to be enough to offset the entire investment. WeWork's pre-existing debt of around $4 billion leaves little margin of value for current shareholders, estimated at around $200 million, a far cry from the $47 billion valuation of yesteryear.

 


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