Softbank shares up on reports it will scale back Wework investment amid tech rout
Shares in Softbank rose more than five per cent this morning following reports it has scaled back its new investment in Wework.
The Japanese conglomerate reportedly plans to invest $2bn (£1.6bn) into the shared workspace startup, down from the original sum of $16bn.
The investment will no longer involve Softbank’s prolific $100bn Vision Fund, the Financial Times reported yesterday.
Softbank has already committed more than $8bn to the co-working firm, which has grown rapidly despite rising losses.
But the slashing of investment plans reflects growing investor caution over tech stocks, which have fallen sharply in recent months.
Softbank shares were up 5.7 per cent this morning following the reports, but remain down 32 per cent since the beginning of October.
In December the firm suffered a disappointing Tokyo debut, with shares closing down 15 per cent after its record-breaking IPO.
Softbank’s Vision Fund, which has received criticism for its reliance on Saudi money, has made significant investment in other tech giants such as Uber and driverless car company GM Cruise.
The $2bn Wework injection could be announced as soon as this week, sources close to the deal told the Financial Times.
Wework declined to comment. Softbank has been contacted for comment.