Softbank unveiled its plans of investing $100 billion in tech companies along with the Saudi Arabian sovereign wealth fund known as ‘The Vision Fund’, just a few months back. With regards to the same, SoftBank Group Corp is now mulling over investing a massive sum of $1 billion in a co-working space provider, WeWork.
Though both the leads, SoftBank and WeWork have declined to comment on the matter, the reports of the same were first penned by WSJ citing people familiar with the investment talks.
This would be the very first investment pouring out of the awe-spiring tech fund created by the Japanese multinational, SoftBank. WeWork is an office-sharing space currently valued at $17 billion, though the sources reveal that the telecommunications giant has valued the company higher than the said valuations. Moreover, prior to the creation of the tech fund, SoftBank had discussed an investment in WeWork but the deal couldn’t be cracked at the time then.
WeWork is an office-sharing space currently valued at $17 billion, though the sources reveal that the telecommunications giant has valued the company higher than the said valuation. Moreover, prior to the creation of the tech fund, SoftBank had discussed an investment in the said venture but the deal couldn’t be cracked at the time.
SoftBank had stated earlier that the said fund will be utilized particularly towards tech development and progress across the globe. Keeping in mind the origin of the fund, people have now raised arguments based on the integration of tech in just a co-working space provider. Tech experts say that the business of office space is far afield from tech-focused investments.
SoftBank is also engaged in talks with worldwide located cab aggregator, Uber Technologies Inc; though there have been no updates from both the industry holders as far of investments are concerned.
Moreover, the internet corporation set foot in one of the world’s fastest growing markets India about a couple years ago. SoftBank founder Masayoshi Son pledged to invest over $10 billion investment over a decade from the company. Softbank recently pooled in about one-fifth of the said amount in the country, investing in the internet and solar power sectors. The company further plans to pour in more funds in the solar sector in line with solar vision announced by Prime Minister, Narendra Modi.
SoftBank also yearns to contribute towards an electric-vehicle program for the society. The company will launch over 1 million electric vehicles in the country efforting towards a non-pollutant nation and accelerating EV manufacturing in the country.
SoftBank’s recent plans of capital funding in WeWork will only be finalized after the tech fund creation process concludes, mostly by mid-February. Though the concept is quite common these days and has been in the industry for a while now, it is yet to see if SoftBank still wants to stick to its decision.