SoftBank Down 10%, Said It Could Withdraw from Agreement to Buy Stock in WeWork

By Alex Ho

Investing.com – Softbank Group Corp. (T:) said it could withdraw from an agreement to buy $3 billion of stocks in WeWork, Bloomberg reported on Wednesday citing a message to stockholders of the embattled co-working business.

The deal, which was originally part of a rescue financing from SoftBank after WeWork’s failed IPO in 2019, was set to close in about two weeks.

So far, SoftBank has already invested $1.5 billion in WeWork. Bloomberg said today’s news could create uncertainties about whether the Japanese conglomerate is seeking to negotiate a lower price or delay the purchase.

The news sent shares of SoftBank down 10.4% to JPY 3,266 by 2:05 AM ET (06:05 GMT) today.

The company announced last week a $4.8 billion share buyback, a move S&P Global Ratings said “raises questions over its commitment to financial management” and prompted a revision in its outlook for the company to negative.

“We believe SoftBank’s aggressiveness in pursuing growth and managing its finances makes its financial standing weak,” S&P said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.