WeWork in discussions to secure hundreds of millions in funding
- ByStartupStory | March 8, 2023
According to a source familiar with the discussions, WeWork, the workspace rental company that has faced ongoing challenges, is currently in talks to obtain several hundred million dollars in funding to sustain its operations.
An anonymous individual has stated that Yardi Systems Inc., a real estate software manufacturer based in Santa Barbara, California, is considering making an investment in WeWork. The individual requested to remain anonymous as the talks are private. WeWork and Yardi have been collaborating on various projects for at least a year.
According to a source familiar with the discussions, if the suggested agreement is approved, WeWork would be able to reorganise its debt and obtain financial support for a few years. SoftBank Group Corp., which is the company’s biggest external investor, has no intention of providing funding but is willing to modify the conditions of WeWork’s debts.
Spokespersons for WeWork and SoftBank declined to provide any statements. Yardi was unresponsive to comment requests at the time of inquiry.
WeWork, which was formerly among the most valuable startups in the United States, has struggled in recent years. Following a crisis in 2019 that nearly led to its collapse, the company’s renowned founder Adam Neumann was forced to step down, and it received a multi-billion dollar rescue package from SoftBank. The COVID-19 pandemic, which led to the closure of numerous office buildings, added to its woes.
Over the past year, WeWork’s shares have experienced a decline of approximately 76%. Adam Neumann, the company’s former leader, is no longer involved in its management and is currently in charge of a residential real estate startup.
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