SoftBank Down 10%, Said It Could Withdraw from Agreement to Buy Stock in WeWork

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By Alex Ho – Softbank Group Corp. (T:) said it could withdraw from an agreement to buy $3 billion of stocks in WeWork, Bloomberg reported on Wednesday citing a message to stockholders of the embattled co-working business.

The deal, which was originally part of a rescue financing from SoftBank after WeWork’s failed IPO in 2019, was set to close in about two weeks.

So far, SoftBank has already invested $1.5 billion in WeWork. Bloomberg said today’s news could create uncertainties about whether the Japanese conglomerate is seeking to negotiate a lower price or delay the purchase.

The news sent shares of SoftBank down 10.4% to JPY 3,266 by 2:05 AM ET (06:05 GMT) today.

The company announced last week a $4.8 billion share buyback, a move S&P Global Ratings said “raises questions over its commitment to financial management” and prompted a revision in its outlook for the company to negative.

“We believe SoftBank’s aggressiveness in pursuing growth and managing its finances makes its financial standing weak,” S&P said.

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