SoftBank owns 80% of co-working provider WeWork
The Wall Street Journal, citing “people familiar with the matter”, reported on Nov. 11 that T-Mobile US CEO John Legere, who is also tapped to run a combined T-Mo/Sprint, is “in discussion…to take over leadership” of WeWork.
A bit of history. WeWork is primarily owned by SoftBank, also the primary shareholder of Sprint. Former Sprint CEO Marcelo Claure is now SoftBank’s chief operating officer and is tasked with turning around WeWork following an troubled IPO and Co-founder and former CEO Adam Neumann becoming a board observer.
The U.S. Federal Communications Commission recently gave formal go-ahead to the merger of Sprint and T-Mobile US into New T-Mobile on a 3-2 vote. And Legere recently laid out New T-Mobile post-merger commitments, including 5G population coverage of 97% of Americans, a $15 monthly prepaid plan, 5G services without a premium and free unlimited talk, text and 5G internet for eligible first responders.
T-Mobile has taken to characterizing 5G as like a layer cake composed of millimeter wave frequencies as well as low- and mid-band spectrum. Through its combination with Sprint, the new operator will have 600 MHz, 2.5 GHz and millimeter wave licenses.
The so-called “Un-carrier” commitments were regarded by many analysts as meant to appease state attorneys general working to block the deal on grounds that it’s anti-competitive.
Fast Company repots, “A source familiar with the matter…[says] Legere is just one of several potential candidates, and isn’t necessarily the leading candidate.”
Earlier this year We Work was value at more than $40 billion, a figure that had plummeted to around $7 billion by the time Neumann left. SoftBank owns 80% of the co-working provider. SoftBank recently pumped $5 billion to keep WeWork going.
“As important as the financial implications, this investment demonstrates our confidence in WeWork and its ability to continue to lead in disrupting the commercial real estate market by delivering flexible, collaborative and productive work environments to our customers,” Claure said in a press release.
The release said, “WeWork will not be a subsidiary of SoftBank. WeWork will be an associate of SoftBank.”
