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SoftBank May Walk Back Deal for $3B of WeWork Stock
SoftBank Group may walk away from part of its planned bailout of WeWork, the Wall Street Journal reported. A notice sent to WeWork shareholders Tuesday said that SoftBank believes regulatory probes into the startup’s business, including those by the Securities and Exchange Commission and Justice Department, give it an out under the deal struck last fall to purchase $3 billion of WeWork shares from existing investors.
Among those shares is stock owned by founder and former CEO Adam Neumann, who had the right to sell nearly $1 billion in stock as part of an October agreement that led to him stepping down.
SoftBank’s plans to pull the plug on the buyback deal won’t affect the separate $5 billion commitment it agreed to give WeWork directly, according to the Journal.
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