SoftBank Group Corp. is in talks to take a majority share in WeWork Co. This would be a huge bet on the 8-year-old supplier of shared office space, as per sources well aware with the discussions.
The deal could total in the range of $15–20 Billion and might likely come from Vision Fund by SoftBank, some of the sources claimed. The $92 Billion Vision Fund, which is supported majorly by Abu Dhabi and Saudi Arabia wealth funds along with SoftBank, already controls almost 20% of WeWork after in 2017 promising $4.4 Billion in equity shares at a $20 Billion capitalization.
Discussions are fluid and there is no assurance there will be an agreement, some of the sources claimed further. WeWork and SoftBank this summer were talking about a smaller deal that might value WeWork at almost $40 Billion, the media claimed in June 2018. If a deal is cracked, it might be one of the biggest and most momentous agreements.
On a related note, SoftBank earlier claimed that it is spending on a mobile device offering for hotel guests, dubbed as handy Japan. This service offers Internet access and data on tourist attractions.
Terms of the agreement, declared this week, were not revealed. Handy, designed by Hong Kong-located Tink Labs, is accessible in 4,000 hotels in 650,000 rooms all over 82 nations. It launched out in Japan in July 2017 and has been accepted by 240,000 rooms and 1,700 hotels, almost 33% of the country’s hotels, both sides claimed.
Handy operates as a handset rental, which is a complimentary service from the hotel. The gadget can link to the Internet, contact a hotel’s janitor, and make international & local calls. It also offers multilingual city guides. SoftBank claimed that its investment assist grows IoT or “Internet of Things” services for handy gadgets.