TOKYO: Japan-based SoftBank Group confirmed Wednesday it will pump billions of dollars into struggling start-up WeWork, in a deal that ups its stake in the office-sharing firm to around 80 percent.
The package, which involves new financing, speeding up already pledged money and a new tender offer for existing shareholders, is worth a total of $9.5 billion.
It will see co-founder Adam Neumann, who has already been forced to step down as chief executive, exit the board for an “observer” role.
SoftBank Group’s Marcelo Claure will take over as executive chairman of the board.
The agreement caps a turbulent period for the once-vaunted start-up, which was valued by some at around $47 billion at the start of the year, and represents a significant shot in the arm as the company haemorrhages money.
“SoftBank has decided to double down on the company by providing a significant capital infusion and operational support,” SoftBank Chairman Masayoshi Son said in a statement.
“The new capital SoftBank is providing will restore momentum to the company and I am committed to delivering profitability and positive free cash flow,” added Claure in the statement.
The package includes $5 billion in new financing, as well as a commitment to speed up an existing pledge of $1.5 billion.
SoftBank will also launch a tender offer of up to $3 billion for existing shareholders, at a price of $19.19 a share, expected to start in the fourth quarter of 2019.
SoftBank, which already held 29 percent of WeWork, will increase its stake to “approximately 80 percent,” but said this did not constitute taking control of the firm.
The firm said it would not hold a majority of voting rights at any general stockholder meeting or board of directors meeting and “does not control the company.”
“WeWork will not be a subsidiary of SoftBank. WeWork will be an associate of SoftBank,” the statement said.
The plan provides much-needed funds for the troubled company, which sources have said must raise at least $3 billion to cover its financing needs through the end of the year.
A source told AFP the deal will give Neumann $1 billion for his SoftBank shares, $500 million for reimbursements of personal debts and $185 million in consulting fees.
He will also maintain a small stake in the company, the source said.
The deal follows months of tumult for WeWork, which has gone from star status as one of the world most highly rated start-ups to a case study in overvaluation for some analysts.
Neumann stepped down as chief executive in September amid questions over perceived self-dealing between his personal assets and WeWork, and over unconventional personal conduct, including drug use.
And in late September the firm canceled a plan to go public amid questions over its profitability prospects for the long run.
“Hopefully, this marks the beginning of the end of using IPOs on hyped-up loss-making unicorns as a profit-taking opportunity before the music stops,” wrote Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA, in a note.
WeWork, which launched in 2010, has touted its model as revolutionizing commercial real estate by offering shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.
In some cities, it is one of the major landlords, but its model of offering flexible, short-term leases, is viewed by some as less of a selling point and more of a liability for investors.
The saga has been a cloud hanging over SoftBank’s Son, but he has remained steadfastly committed to the firm, insisting its challenges are surmountable.
“It is not unusual for the world’s leading technology disruptors to experience growth challenges as the one WeWork just faced,” Son said in the SoftBank statement Wednesday.
“We remain committed to WeWork, its employees, its member customers and landlords.”
SoftBank confirms multibillion-dollar bailout for WeWork
SoftBank confirms multibillion-dollar bailout for WeWork
- The agreement caps a turbulent period for the once-vaunted start-up, which was valued by some at around $47 billion at the start of the year
- WeWork, which launched in 2010, has touted its model as revolutionizing commercial real estate by offering shared, flexible workspace arrangements
Saudi Maaden reports 156% profit surge to $2bn on strong commodity prices, record production
RIYADH: Saudi mining and metals company Maaden has reported a 156 percent jump in its net profit attributable to shareholders for 2025, driven by higher commodity prices, record production volumes, and a one-off bargain purchase gain.
The state-backed giant posted a net profit of SR7.35 billion ($1.95 billion) for the full year 2025, an increase from SR2.87 billion in the previous year. The firm’s revenue surged by 19 percent to SR38.58 billion, up from SR32.55 billion in 2024.
This comes as Saudi Arabia steps up efforts to expand its mining sector as a pillar of economic diversification, encouraging international participation and private investment to unlock the Kingdom’s estimated $2.5 trillion in untapped mineral resources under Vision 2030.
In a statement on Tadawul, the company said: “Performance was led by record phosphate production, near record aluminum production, an increase in all three of Maaden’s main output commodity prices.”
The performance was also fueled by a 60 percent increase in gross profit, which reached SR14.79 billion. In its annual results announcement, Maaden attributed the top-line growth to “higher commodity market prices for phosphate, aluminum and gold business units,” as well as increased sales volumes in its phosphate and aluminum segments. This was partially offset by slightly lower sales volume in the gold unit.
Maaden’s CEO, Bob Wilt, hailed 2025 as a transformative year for the company, marked by strategic growth and operational excellence. “This was a great year for Maaden’s strategic growth. We delivered strong financial results and sustained operational excellence across the business,” he said in a statement.
“This was driven by growth in production across all businesses, including record-breaking DAP (di-ammonium phosphatevolumes), disciplined cost control across and a clear commitment to our role as a cornerstone of the Saudi economy,” Wilt added.
Profitability was further bolstered by an increased share of net profit from joint ventures and an associate. This included a one-off bargain purchase gain of SR768 million related to Maaden’s investment in Aluminium Bahrain B.S.C. The company also benefited from lower finance costs.
The fourth quarter of 2025 was strong, with Maaden swinging to a net profit of SR1.67 billion, compared to a loss of SR106 million in the same period of the prior year. Quarterly revenue rose 7 percent to SR10.64 billion.
The firm achieved record production of di-ammonium phosphate, reaching 6.72 million tonnes for the year, a 9 percent increase. Aluminum production remained near-record levels, while the company added a net 7.8 million ounces to its reportable gold mineral resources through discovery and resource development.
The phosphate division saw sales jump 17 percent to SR20.77 billion, with the earnings before interest, taxes, depreciation, and amortization margin expanding to 47 percent. The aluminum business reported a 9 percent increase in sales to SR10.99 billion, with EBITDA more than doubling in the fourth quarter.
Looking ahead, Wilt emphasized that the pace of growth will accelerate as the company advances key initiatives, including the Phosphate 3 Phase 1 and Ar Rjum projects, which remain on budget and schedule. Maaden has also secured a gas supply for its future Phosphate 4 project.
“This pace of growth will only accelerate. Not only as we advance projects and increase the scale of our exploration program, but as we continue to grow production and implement technology that will further modernize, streamline and unlock value,” Wilt added.
Earnings per share for the year rose sharply to SR1.91, up from SR0.78 in 2024. Total shareholders’ equity increased by 18.7 percent to SR61.59 billion.
