SoftBank, a partner of Ripple in the MoneyTap and PayPay-LINE deal, canceled a $ 9.6 billion deal with WeWork because of the coronavirus effect on customers, and now WeWork is suing the financial conglomerate.
SoftBank cancels its WeWork deal
Last October, WeWork won an auction organized by SoftBank Group worth $ 3 billion. That amount was part of a very large financial package ($ 9.6 billion) that the financial giant would give to WeWork to save the company from their current difficulties. In addition, the deal would give SoftBank control of the startup.
SoftBank has now canceled the deal in the midst of worldwide distribution of COVID-19.
The financial institution cited the effect of the coronavirus on customers as it explained the reasons why they canceled the transaction. The bank also cited WeWork’s criminal investigations in the US.
In response, a lawsuit by WeWork opened a lawsuit against SoftBank. After canceling the tender with WeWork, the financial giant is working on a deal with Trustbridge Partners as an alternative.
Before concluding a deal with SoftBank last October, WeWork had to cancel its IPO plans due to financial difficulties.