Independent WeWork board members have spent recent days weighing their options, including legal remedies, after SoftBank indicated it would back out of a deal to spend up to $3 billion to buy shares from the company’s investors and employees, WSJ reported.
- There will be lawyers: SoftBank controls half of WeWork’s board and responded that “it will continue to honor its obligations” in the deal. “In October, all parties agreed to specific closing conditions to protect SoftBank that must be satisfied before the tender offer can be completed… As of now, they are not.”
- Dig Deeper: WeWork first received a subpoena from the SEC in November. That investigation, and a parallel one by the Justice Department, center on a previous investment by SoftBank and whether WeWork was truthful in its disclosures.