Japanese investor makes multi-billion-dollar rescue deal with WeWork

American real estate firm WeWork has been offered a multi-billion-dollar rescue deal from Softbank.

The Japanese company is hoping to take better control of startup WeWork, providing $5bn (around £3.9bn) in finance and up to around $3bn for current shareholders.

Softbank aims to increase its stake in WeWork through this deal, sharing around 80 per cent of the startup.

Co-founder Adam Neumann stepped down as chief executive when questions about his leadership came to light. He is still to remain at the company with ‘observer’ status despite leaving the board.

With this new deal, Softbank aims to grow an existing commitment to raise $1.5bn for the company. The Japanese investor already owns around one third of WeWork.

Marcelo Claure is to take over as executive chairman of the WeWork board.