
SoftBank Group Corp. is investing $1.1 billion to its WeWork business as the company faces tough sustainability in the coronavirus pandemic.
The fresh financing, “another sign of SoftBank’s continued support for our business,” boosts the New York-based company’s available cash and unfunded cash commitments to $4.1 billion, according to chief financial officer Kimberly Ross.
It recorded a cash outflow of $671 million in the quarter (Q1 FY21), due to $116 million in non-recurring restructuring expenses. Ross noted that the company reached its peak outflow in Q4 FY19 of $1.3 billion.
The company’s membership base fell 12% to 612,000 QoQ.
The new investment from SoftBank comes after the $100 billion Vision Fund recorded losses after writing down WeWork’s valuation to $2.9 billion, down more than 90% from its $47 billion peak.
SoftBank’share has risen more than 133% in 2020. Read here.