SoftBank Group Corp. is in discussions to invest another giant slug of capital in WeWork Cos., with a deal that would value the shared-office company at $35 billion to $40 billion, according to people familiar with the matter.
Such an investment would roughly double WeWork’s $20 billion valuation, set last August when SoftBank invested $4.4 billion in the company. It would make the New York firm the second most valuable privately held, venture-backed U.S. startup behind Uber Technologies Inc.
WeWork and SoftBank are talking about a multibillion-dollar investment, though the people caution the discussions are in flux. SoftBank’s $92 billion tech-focused Vision Fund, which led last year’s deal, would also lead this investment, these people said.
Rajeev Misra, who heads the Japanese conglomerate’s Vision Fund, said at a tech conference in London that WeWork was looking to raise money at a $35 billion valuation, Business Insider reported Wednesday. “Maybe it’s overvalued, but I believe they’ll be a $100 billion company in the next few years,” the publication reported Mr. Misra as saying.
A SoftBank spokesman confirmed Mr. Misra made those remarks, declining further comment. A WeWork spokesman declined to comment.