SoftBank Group Corp. is in discussions to provide WeWork with roughly $5 billion of rescue financing in an effort to salvage one of the conglomerate's biggest investments.
The funds will come directly from SoftBank, rather than its Vision Fund, according to a person familiar with the matter who asked not to be named because the talks are private. SoftBank, which already owns about a third of WeWork, would not amass a majority of voting rights, though its stake would increase, the person said. Part of the package may include nonvoting preferred stock.
News of the financing talks sent WeWork's bonds to their biggest gain on record Wednesday. The jump of more than 8 cents on the dollar erased a record plunge a day earlier.
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