Japan's SoftBank is close to making an investment in U.S. office-sharing startup WeWork expected to be worth over $3 billion, according to CNBC. Fred Katayama reports.
Japan's SoftBank is close to investing over $3 billion in the U.S. office-sharing startup WeWork, according to CNBC. If the deal closes, WeWork will be valued at more than $20 billion. WeWork provides shared workspaces in the Americas, Europe, Hong Kong, and Shanghai. It plans to expand to Beijing in May. It's also planning a public offering. But WeWork is not exactly a great deal right now, says Max Wolff of 55 Capital. (SOUNDBITE) MAX WOLFF, MARKET STRATEGIST, 55 CAPITAL, (ENGLISH) SAYING: "What would make me nervous about it, if I were going to be nervous, is, for about 150 years, for which we have data, the interest rates and property values vary inversely, and we just stayed in the lowest interest rates in modern history for the longest time in modern history and it looks like they're headed back up. This is not particularly good news for property. And that has implications for long-term leases that have been signed for by WeWork." This news of an impending deal comes as SoftBank goes beyond telecom toward tech. Earlier, its CEO promised President Donald Trump a $50 billion investment and 50,000 new jobs in the United States. But some of SoftBank's moves have caused concerns among analysts because it's wrestling with heavy debt.