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SoftBank Reportedly Scraps $16 Bln WeWork Investment In Favor Of Smaller Deal

SoftBank Group Corp. has scrapped a planned $16 billion investment in shared-office space provider WeWork Cos., opting instead for a smaller deal of about $2 billion amid market turbulence and opposition from investment partners, the Wall Street Journal reported citing people familiar with the matter.

The two companies could announce the smaller deal as soon as Tuesday, valuing WeWork at about $36 billion, with half of the money going to buy shares from existing investors, the report said. SoftBank is already a major investor in WeWork having committed more than $8 billion, partly from the Japanese company's giant tech-investment fund.

The earlier plan to acquire a majority stake in WeWork would have been one of the largest ever investments in a private tech startup, calling for SoftBank to spend $10 billion to buy out existing investors and provide an additional $6 billion in new capital over the next three years, the Journal said.

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