Image copyrightWeWorkStruggling property start-up WeWork has been thrown a lifeline from Softbank, with a multi-billion dollar rescue deal.
In a statement, Softbank said it would provide $5bn (3.9bn) in new financing and up to $3bn for existing shareholders.The deal will see Japan's Softbank increase its stake in the US company to around 80%.Co-founder Adam Neumann will leave the board but retain "observer" status.
The bailout follows the collapse of WeWork's plans to raise money via stock markets.In addition to new financing and a tender offer for existing shareholders, Softbank said it will "accelerate" an existing commitment to fund $1.5bn.
The Japanese investment giant already owned about a third of WeWork."SoftBank is a firm believer that the world is undergoing a massive transformation in the way people work," Softbank Chairman Masayoshi Son said in a statement.
"Since the vision remains unchanged, Softbank has decided to double down on the company by providing a significant capital infusion and operational support," he said.The deal marks the end of a tumultuous period for the start-up that saw Mr Neumann step down as chief executive as questions over his leadership emerged.
WeWork, which rents shared office space and helped to popularise co-working, has grown from a single office in New York City to more than 500 locations around the world.
But it lost about $900m in the first six months of this year.The firm's share offering received a lukewarm reaction from investors, who raised concerns about the firm's financing and governance.
WeWork officially dropped the flotation plan last month.