u.today
SoftBank, Ripple’s partner in the MoneyTap and PayPay-LINE deal, has cancelled its $9.6 bln deal with WeWork due to the coronavirus' effect on customers and now WeWork is suing the financial conglomerate.
SoftBank cancels their deal with WeWork
In October last year, WeWork won a tender set up by SoftBank Group worth $3 bln. That amount was a part of the much large financial package ($9.6 bln) that the financial giant was going to give WeWork to save it from its current difficulties. In addition, the deal would have given SoftBank control over the startup.
Now, SoftBank has cancelled the deal right in the middle of the COVID-19 spread around the globe.
The financial heavyweight referred to the coronavirus' effect on customers as it explained the reasons they cancelled the deal. Additionally, the company pointed to criminal investigations connected to WeWork in the US.
In response to that, WeWork’s legal team has started a legal action against SoftBank. After cancelling the tender offer with WeWork, the financial giant is working on a deal with Trustbridge Partners as an alternative.
WeWork’s cash trouble
Prior to inking a deal with SoftBank in October last year, WeWork had to cancel its plans for an IPO due to financial difficulties.