‘We created a monster,’ SoftBank CEO Masayoshi Son reportedly said of WeWork

‘We created a monster,’ SoftBank CEO Masayoshi Son reportedly said of WeWork

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(*******)(********)Masayoshi Son, CEO of Japanese mega-investor SoftBank, told colleagues that “we created a monster” in WeWork, the Financial Times reported.(*********)(**********)
(*******)(********)SoftBank will on Wednesday impose stricter governance standards on dual-class share structures after the WeWork fiasco, the FT said.(*********)(**********)
(*******)(********)SoftBank is expected to take a multibillion dollar writedown on WeWork, the FT said. (*********)(**********)
(*******)(********)(***********)View Business Insider’s homepage for more stories.(************)(*********)(**********)
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(**)Masayoshi Son, CEO of Japanese mega-investor SoftBank, told colleagues that “we created a monster” in WeWork after investing billions into the firm only to later bail it out, the (****************)Financial Times reported.(************)(*****)
(**)SoftBank last month bailed out the cash-strapped real estate firm to the tune of just over $8 billion, with an (*****************)accelerated payment of $1.5 billion(************) just to ensure the company didn’t run out of money. SoftBank being one of the company’s main backers, is now under scrutiny for the way it invests.(*****)
(**)The FT also separately reported, citing unnamed sources, that (******************)SoftBank will on Wednesday impose stricter governance standards (************)on dual-class share structures after the WeWork fiasco — an about-face for Son who the newspaper says is “known as a risk-addicted dealmaker.” (*****)
(**)SoftBank is expected to take a multibillion dollar writedown on WeWork, the FT said. 
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(**)Prior to the bailout, SoftBank had invested more than $(***********************************************) billion in WeWork and the office-sharing firm was valued at $(*******************************************) billion at its peak. The firm planned to IPO and backers dreamed of a valuation of more than $(*************************************) billion.(*****)
(**)But intense scrutiny over WeWork’s governance and business model resulted in the firm indefinitely delaying its IPO, and its idiosyncratic cofounder Adam Neumann stepping down as CEO in September, (*******************)followed by the bail out last month.(************)(*****)
(**)Son, the Financial Times cited a person close to him as saying, has been shaken by the ordeal. The Japanese magnate has said little publicly about WeWork since the funding deal, although (********************)he has said that he is “embarrassed” in general(************) by SoftBank’s missteps.(*****)
(**)”We created a monster,” Son told colleagues, according to the paper. And in reference to Neumann: “We gave him all the capital.”(*****)
(**)This, along with Uber, which has lost more than a quarter in value since going public, and according to (*********************)CNBC(************) cost the Japanese firm $(**********************************) million so far, is leading to investors worrying about the real value of SoftBank’s ventures. 
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(**)”If SoftBank says this is the value, how much of that should you believe?” the FT cited Kirk Boodry, a technology analyst at Redex Holdings who publishes on Smartkarma, a research platform, as saying. (*****)
(**)WeWork and SoftBank did not immediately respond to a Business Insider request for comment. (*****)
(**)(****************)Read the Financial Times’ report here(************).(*****)

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