SoftBank Commits $1.1 Billion to WeWork as the Company Cuts Burn Rate
Posted on 08/14/2020
Amid the COVID-19 lockdown, WeWork was able to cut its burn rate by nearly 50% from the end of 2019. As a reward, Japan-based SoftBank Group Corporation made a US$ 1.1 billion commitment in new financing into WeWork. Is WeWork becoming more cash conscious? WeWork reported its first quarter revenue to be US$ 1.1 bilion, while its cash burn was US$ 482 million. The US$ 1.1 billion was the remaining portion of the debt facilities agreed to the October 2019 deal.
WeWork lost members, ending the quarter with 612,000 members from 693,000 in the prior quarter. WeWork has seen renewed demand from enterprise companies, as office flex becomes important in a COVID-19 environment. Enterprise members made up 48% of its member base. WeWork has 843 locations in 150 cities across 38 countries.
