The distressed property start-up,WeWork has accepted a multi-billion-dollar lifeline from Japan-based Softbank.
The company has grown from a single office in New York City to more than 500 locations around the world. But it lost about $900 million in the first six months of this year.
Softbank said it would provide $5billion in new financing and also $3billion for existing shareholders.
The deal will increase the bank’s stake in the US office-space sharing start-up to 80%.
Report says the Co-founder, Adam Neumann will receive nearly $1.7billion as he sells his shares in the company.
Mister Neumann will leave the board and retain his status as observer.