By Niket  Nishant and Anirban Sen
       NEW YORK, Nov 7 (Reuters) - SoftBank Group Corp
, the Japanese conglomerate led by Masayoshi Son,
invested about $16 billion in WeWork in the years that led up to
the flexible-workspace company's bankruptcy, according to
Reuters calculations. 
    The spectacular implosion of WeWork, which has inspired
books, podcasts and a TV show, were among the most expensive
SoftBank bets that soured after the firm raised Vision Fund 1
(VF1) - a $100 billion investment fund it raised in 2017 with
the backing of outside investors - and blotted Son's reputation
as a savvy investor. In 2019, SoftBank launched Vision Fund 2
with its own capital.  
    Since SoftBank first wrote a $4.4 billion check to WeWork in
early 2017, the Japanese conglomerate invested nearly $12
billion more of equity and debt in WeWork through its various
entities, including its Vision Funds, according to regulatory
filings, press releases and data analyzed by Reuters. 
    SoftBank's bet on WeWork started to unwind at the time of
its highly-anticipated initial public offering (IPO) in 2019
when the company was being courted by Wall Street's top
investment banks, many of whom had pitched SoftBank and WeWork
astronomical valuations at the time.

By October that year, WeWork's IPO had been abandoned and
the company found itself on the brink of going under water,
forcing SoftBank to put together a rescue financing package of
$9.5 billion, including a $5 billion debt package, to bail out
the company. The deal valued WeWork at $8 billion at the time. 
    Son later publicly admitted that he overestimated WeWork and
its co-founder Adam Neumann, whose erratic management style,
combined with WeWork’s lack of a clear path to profitability,
alienated potential IPO investors. Neumann quit as CEO in 2019,
bowing to pressure from some investors.
    WeWork subsequently went public through a deal with a
special purpose acquisition company (SPAC) in 2021 that valued
the company at $9 billion. However, even after it hired new
management in 2020, SoftBank struggled to turn WeWork's fortunes
around, despite the company's efforts to drastically cut costs,
shutter money-losing locations, and sign new clients.
    SoftBank had a credit support deal with WeWork worth $1.1
billion as of end-June. 
    Below is a summary of SoftBank's key investments in WeWork.
    
    
 DATE OF         SOFTBANK'S BETS ON WEWORK
 INVESTMENT      
 Aug 2017        SoftBank makes its first investment in
                 WeWork, investing $4.4 billion in the
                 company.
 Jan 2019        WeWork raises an additional $2 billion
                 from SoftBank. Reaches peak valuation of
                 $47 billion. 
 Aug 2019        WeWork files for IPO. Discloses losses
                 of $1.9 billion for 2018. 
 Sept 2019       Co-founder Neumann agrees to step down
                 as CEO, after pressure from biggest
                 investors worried about WeWork's future
                 prospects.
 Sept 2019       WeWork withdraws IPO filing.
 Oct 2019        SoftBank puts together $9.5 billion
                 rescue package to bail out WeWork. As
                 part of deal, Neumann was set to
                 receive$1.7 billion to relinquish
                 control. SoftBank COO Marcelo Claure
                 named WeWork's executive chairman. 
 Nov 2019        Son admits lapse in judgment on WeWork
                 investment, tells investors that
                 WeWork's failure was "a very harsh
                 lesson.”
 April 2020      SoftBank pulls $3 billion tender offer
                 for additional WeWork shares, saying
                 several pre-conditions had not been met.
 April 2020      WeWork sues SoftBank for pulling the
                 tender offer.
 May 2020        Neumann files a lawsuit against SoftBank
                 for backing out of the deal.
 Feb 2021        SoftBank reaches a settlement with
                 WeWork’s special committee and with
                 Neumann, agrees to buy half the shares
                 it had originally said it would buy.
 March 2021      WeWork agrees to go public through a 
                 SPAC deal that valued the company at $9
                 billion.
 Oct 2021        WeWork starts trading on the NYSE.
 Nov 2023        WeWork files for bankruptcy.
    
  

    
 (Reporting by Anirban Sen in New York and Niket Nishant in
Bengaluru; Editing by Aurora Ellis)