The whole WeWork saga just keeps getting stranger and uglier, especially for SoftBank, Vision Fund, SoftBank’s $100 billion subsidiary investment vehicle, and Masayoshi “Masa” Son, founder, chairman and CEO of SoftBank and CEO of the Vision Fund.
SoftBank just took control of the floundering WeWork this morning with an almost $5 billion rescue package after the company’s board sought out 75 financing sources in a week, but in the end chose SoftBank’s deal over JPMorgan’s junk bond-based rescue plan.
Too bad for SoftBank, the Vision Fund, Masa Son, WeWork, its investors, and its employees, the rescue package is only a temporary lifeline.
WeWork will need a lot more cash in early 2020.
Here’s what happened to WeWork, who put in how much, how bad the losses are, and what it all says about the slippery valuation game theory practiced by venture capital firms and Wall Street…
While the markets will eventually go higher, they’re stalling due to the anti-capitalism sentiments from the political field. With Boeing (BA) and Johnson and Johnson (JNJ) becoming bigger targets to villainize capitalism, Charles Payne and I know that not all companies have these systemic issues, but it’s nothing we haven’t seen before. However, if Democratic presidential hopefuls use this fuel to the fire for new regulation, capitalism as we know it could get shot down. See where things go from here for markets, the economy, and the future of the United States… Click here to watch.