WeWork in Trouble as SoftBank may scrap plan to buy $3 billion

The stock purchase agreement was a part of the plan to rescue WeWork, which has been struggling after its failed IPO.

Japanese conglomerate SoftBank Corp has told WeWork shareholders that it may pull out of an agreement to buy stock worth $3 billion, according to a Bloomberg report.

SoftBank has warned it could withdraw from a $3bn purchase of shares in WeWork, the lossmaking office space provider that it rescued late last year as the company was staring down insolvency, according to four people briefed on the matter.

A notice sent to WeWork shareholders Tuesday said that SoftBank believes regulatory probes into the startup’s business, including from the Securities and Exchange Commission and Justice Department, give it an out under the deal struck last fall to purchase $3 billion of WeWork shares from existing investors.